(PTI)
The oil ministry on Thursday justified the steep Rs 144.50 per cylinder hike in cooking gas LPG prices, saying the rates are based on the international market price that had increased over 26 per cent last month. It also said domestic consumers have been largely insulated from the hike by way of the large increase in subsidy.
“The LPG price is derived based on the international market price for the previous month,” the ministry said in a statement. “On account of a sharp increase in the international price of LPG during January 2020 from USD 448 per ton to USD 567 a tonne, there has been a hike of Rs 144.50 for a 14.2 kg cylinder,” it added.
The ministry said the increase in price for 26.12 crore out of total LPG user base of 27.76 crore is borne by the government by enhancing the subsidy component.
