Mumbai: On Tuesday, the prices of jet fuel and non-subsidised liquefied
petroleum gas (LPG) were raised 0.5 per cent and Rs 16.5 a cylinder,
respectively. This follows an increase in global oil prices due to the
crisis in Iraq.
The price rise comes a day after oil marketing companies increased petrol prices by Rs 1.69 a litre and diesel prices by 50 paise a litre. While there is no subsidy on petrol and jet fuel, the phased 50 paise/litre rise has widened the revenue loss on diesel to Rs 3.4 a litre According to a Press Trust of India report, the loss stood at Rs 1.62 a litre last month.
The LPG price increase, the first this year, will be for the 13th cylinder a customer buys, after exhausting the quota of 12 subsidised cylinders. The increase, however, isn’t expected to reduce the subsidy on the sale of cooking gas, as more than 90 per cent of the consumption by households is covered through subsidised cylinders, priced at Rs 414 each. Each non-subsidised cylinder will now cost Rs 922.5 in Delhi and Rs 949.5 in Mumbai. Losses on subsidised LPG cylinders rose to Rs 449 from Rs 432.71 in May.
Read news in full 02/07/14 Business Standard
The price rise comes a day after oil marketing companies increased petrol prices by Rs 1.69 a litre and diesel prices by 50 paise a litre. While there is no subsidy on petrol and jet fuel, the phased 50 paise/litre rise has widened the revenue loss on diesel to Rs 3.4 a litre According to a Press Trust of India report, the loss stood at Rs 1.62 a litre last month.
The LPG price increase, the first this year, will be for the 13th cylinder a customer buys, after exhausting the quota of 12 subsidised cylinders. The increase, however, isn’t expected to reduce the subsidy on the sale of cooking gas, as more than 90 per cent of the consumption by households is covered through subsidised cylinders, priced at Rs 414 each. Each non-subsidised cylinder will now cost Rs 922.5 in Delhi and Rs 949.5 in Mumbai. Losses on subsidised LPG cylinders rose to Rs 449 from Rs 432.71 in May.
Read news in full 02/07/14 Business Standard
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