The Hush Post| 4:55 pm|one-minute-read|
The LPG prices shot up on Wednesday by a whopping Rs 144.5 per cylinder due to spurt in benchmark global rates of the fuel.
However, to insulate domestic users, the government almost doubled the subsidy it provides on the fuel to keep per cylinder outgo almost unchanged.
Many said that the decision to defer the increase could have been because of assembly elections in Delhi. Delhi voted on February 8. AAP won and the prices have now been hiked.
LPG price was increased to Rs 858.50 per 14.2 kg cylinder from Rs 714 previously, according to a price notification of state-owned oil firms.
This is the steepest hike in rates since January 2014. In that month of 2014, the prices had gone up by Rs 220 per cylinder to Rs 1,241.
Domestic LPG users, who are entitled to buy 12 cylinders of 14.2-kg each at subsidised rates in a year, will get more subsidy.
The government subsidy payout to domestic users has been increased from Rs 153.86 per cylinder to Rs 291.48, industry officials said.
For Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries, the subsidy has increased from Rs 174.86 to Rs 312.48 per cylinder.
After accounting for the subsidy that is paid directly into the bank accounts of LPG users, a 14.2-kg cylinder would cost Rs 567.02 for domestic users and Rs 546.02 for PMUY users.
The government gave out 8 crore free LPG connections to poor women under PMUY to increase coverage of environment-friendly fuel in kitchens.