<p>Domestic LPG price may see a hike of Rs 10 per cylinder if the government decides to accept “strong” recommendations made by the Petroleum Ministry to offset the rising fuel subsidy burden.<br /><br /></p>.<p>The news is equally bad for piped cooking gas consumers. A decision on increasing the price of natural gas is expected as early as this week.<br /><br />Discussions are at an advanced stage with Prime Minister Narendra Modi accelerating the pace of meetings with oil and finance ministers.<br /><br />Every dollar increase in gas price may lead to Rs 1.89 per standard cubic metre hike in piped cooking gas price.<br /><br />If the government accepts to bite the bullet, this will be its second major step after the increase in the railway fare and freight charges and may trigger a chain reaction as it may push prices of food, power and fertiliser, among others.<br /><br />At present, the government incurs a loss of Rs 433 on a domestic subsidised cylinder meant for household kitchen. The Rs 10 hike will save it Rs 7,000 crore on fuel subsidy bill.<br /><br />“Iraq crisis has posed a fresh challenge to the new government and there may not be any other way out than increasing prices of fuels,” an official told Deccan Herald.</p>
<p>Domestic LPG price may see a hike of Rs 10 per cylinder if the government decides to accept “strong” recommendations made by the Petroleum Ministry to offset the rising fuel subsidy burden.<br /><br /></p>.<p>The news is equally bad for piped cooking gas consumers. A decision on increasing the price of natural gas is expected as early as this week.<br /><br />Discussions are at an advanced stage with Prime Minister Narendra Modi accelerating the pace of meetings with oil and finance ministers.<br /><br />Every dollar increase in gas price may lead to Rs 1.89 per standard cubic metre hike in piped cooking gas price.<br /><br />If the government accepts to bite the bullet, this will be its second major step after the increase in the railway fare and freight charges and may trigger a chain reaction as it may push prices of food, power and fertiliser, among others.<br /><br />At present, the government incurs a loss of Rs 433 on a domestic subsidised cylinder meant for household kitchen. The Rs 10 hike will save it Rs 7,000 crore on fuel subsidy bill.<br /><br />“Iraq crisis has posed a fresh challenge to the new government and there may not be any other way out than increasing prices of fuels,” an official told Deccan Herald.</p>
