In a blow to LPG customers the Centre had directed the state run oil companies to increase LPG prices by Rs 4 per cylinder every month to eliminate subsidy by March 2018. By doing that the government will shed additional burden on the exchequer.
Congress, SP, TMC, BSP and Left MPs stormed into the Well of the House shouting slogans seeking withdrawal of the decision, forcing Deputy Chairman P J Kurien to first adjourn the proceedings for 10 minutes and then till noon.
Now, the quantum has been doubled so as to bring down the subsidy to nil, he said in a written reply in the Lok Sabha.
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The government has ordered State-owned oil marketing companies to increase the prices of subsidised cooking gas (LPG) by Rs 4 per cylinder every month.
The Nepal Oil Corporation on Tuesday made a decision to decrease the price of liquefied petroleum (cooking) gas by Rs 25 per cylinder.
Oil Minister Dharmendra Pradhan justified the decision in the Upper House and said the move was initiated in June 2010 by the erstwhile UPA government so that the subsidies can be completely eliminated.
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He informed that the government, in its order dated 30th May this year, has authorised the oil companies to increase the price by four rupees excluding tax per month.
Replying in Lok Sabha on Monday, Pradhan had said the hike was taken to cut off the subsidies entirely by March next year. The hike was also a reflection of hiked tax rates on it under the Goods and Services Tax regime.
As of now, every household is entitled to 12 LPG cylinders of 14.2-kg each at subsidised rates in a year.
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"Nonetheless, the deregulation in LPG prices will open the market for private players and OMCs may face increased competition from private or standalone refineries over the longer term", he said.