Cooking gas price increases likely to stop after March

Moneycontrol BureauThe hike in prices of cooking gas i.e liquefied petroleum gas or LPG is likely to be discontinued after March 2017. However, the hike in Kerosene prices may continue, in a bid to promote the use of LPG, according to some senior government officials, says Business Standard report.

The government every month revises the price of kerosene and LPG. So far, the price of the subsidised LPG cylinder has gone up by 11 percent since May. The number of subsidised cylinders for each connection is limited to 12 per year.

The revenue loss incurred by the government due to LPG subsidy was as high as Rs 76,285 crore in 2014-15. However, it fell to Rs 27,571 crore the following year due to a fall in global petrol prices.

Meanwhile, the revenue loss on account of sale of kerosene stood at Rs 11.496 crore that is 54 percent less in 2015-16.

Petrol prices were decontrolled in June 2010 and diesel was decontrolled October 2014.