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Subsidised LPG prices move up steadily
Why is it in the news?
- The State-owned oil marketing companies (OMCs) have steadily increased the prices of domestic subsidised cooking gas prices.
- The prices are increased by ₹63 over the last six months to ₹557 per cylinder amid a benign oil price environment.
More in the news
- Beneficial to OMCs:
(1) Increasing the price of domestic subsidised liquefied petroleum gas (LPG) cylinder augurs well for the OMCs and will help them to reduce under-recoveries.
(2) LPG accounts for the largest share of under-recoveries after diesel prices were freed in 2014.
(3) Deregulating LPG will boost the working capital of the OMCs.
(4) It will also aid in privatisation of State-owned Bharat Petroleum Corporation Limited (BPCL).
- Subsidy won’t go:
(1) The subsidy under Pradhan Mantri Ujjwala Yojana (PMUY) will not go as the government is providing free cooking gas to the poor.
(2) The government is expected to to have over 8 crore such connections by March 2020 of the total 25 crore LPG customers.
Source
The Hindu.