A day after the cap on subsidised cooking gas cylinder was raised to nine, state-run oil companies on Friday hiked the price of non-subsidised LPG by Rs 46.50 per cylinder, a move that will help them to mitigate losses.
The non-subsidised LPG cylinders are now expected to cost Rs 942 in Delhi. However, rates will vary from state to state, depending on local taxes.
Diesel price was also hiked by 45 paise per litre, excluding state levies, while petrol price was slashed by 25 paise. A decision to this effect was taken on Thursday and implemented on Friday.
Consequently, diesel in Delhi will cost Rs 47.65 per litre as against Rs 47.15 per litre earlier. A litre of diesel will cost Rs 53.71 in Mumbai, Rs 51.51 in Kolkata and Rs 50.68 in Chennai.
The move is expected reduce the government’s subsidy bill and rein in fiscal deficit. Now, the government coughs up a whopping Rs 96,000 crore as subsidy for diesel.
According to ministry officials, the oil marketing companies can revise diesel price by less than Re 1 per litre at one go. The rates of non-subsidised domestic LPG cylinders, which were earlier expected to be determined every month based on the import parity price of LPG, have not been revised since November.