The Union Government had previously asked Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) to raise rates of subsidised domestic LPG (liquefied petroleum gas) by Rs. 2 per 14.2-kg cylinder per month (excluding VAT).
In the last review OMCs had not changed the price of both ATF and non-Subsidised LPG. The government subsequently transfers the subsidy amount of Rs 86 per cylinder which includes government subsidy of Rs 58 and the other Rs 28 is borne by the oil marketing companies through direct benefit transfer to beneficiaries' bank accounts.
Opposition parties on Tuesday demanded a roll-back of the central government's decision to increase the price of subsidised cooking gas by Rs 4 per cylinder every month.
Today, Trinamool Congress lawmaker Derek O'Brien raised the issue, saying the government was not fulfilling its social commitment to provide cooking gas at subsidised rates to the poor. Revolutionary Socialist Party MP NK Premachandran claimed that the government was avoiding transparency by not announcing the decision, which he said had been taken in March. This is strongly condemnable. The House witnessed adjournments twice during the zero hour as Opposition members stormed to the Well of the House demanding the Centre to drop the move. "What about those who had given up subsidy voluntarily, influenced by the call given by Prime Minister Narendra Modi", Deb said.
The government is of the view that the increase in prices will have minimal impact on LPG consumers as the overall inflation remains at a low level.
Effectively the hike would come to ₹64 per LPG cylinder since the first go-ahead for monthly revision of prices in July 2016. Hence, government should be prepared to withdraw the decision, he said in a release.