Subsidies on LPG Gas May End by FY22; Know Why?
In coming year, the price of LPG will be raised by average of Rs.100-150 per cyllinder. The Indian government will be evicting the oil subsidy till FY22.
Indian government will be evicting the oil subsidy till FY22. If you have noticed the price of the subsidised cooking gas has been raised in the period of current fiscal which is July-January. The price for the fuel is being paid by the common man is closer to the market rates.
The hike in the subsidised cooking gas can be a move for the consumers. In the coming year, the price will be raised by average of Rs.100-150 per cylinder.
According to the sources, for those who are taking the benefit of low prices, Indian government may order to marketing companies to increase the price of the subsidised cooking cylinder.
It will be an initiative to eliminate the subsidy within a year which is given to the consumers. Motilal Oswal said in his latest report on oil and gas sector "Raising prices of subsidized LPG cylinder augurs well for the OMCs, especially keeping in mind the intended privatization of BPCL. However, the resolve of the government would be tested if oil prices spike".
The OMCs have already increased the price of the subsidised LPG gas cylinder during July 2019-January 2020 by Rs.63 per cylinder. There will be no need to expand central support in 15 months by raising the price of the LPG gas cylinder (14.2 kg) by oil companies.
The Indian government provides Rs.157 into the account of the eligible consumers, the subsidised cooking gas (14.2 kg) is around Rs.557.