The government today clarified that LPG price in the country is derived based on international market price and the recent hike is based on it. Petroleum Ministry said, due to a sharp increase in the international price of LPG last month, the prices of cooking gas was hiked by 144 rupees 50 paise for a 14.2 kg. LPG cylinder.
But as Government gives subsidy on cooking gas, the consumer is given relief by a hike in the subsidy from around 154 rupees per cylinder to 291 rupees.
In this way, the subsidized LPG consumers are insulated from the volatility of LPG prices in the international market. For the Pradhan Mantri Ujjwala Yojana consumers, the subsidy borne by Government has also been increased from 175 rupees per cylinder to 312 rupees.
The clarification comes in the wake of protests by some opposition parties against the hike and demand for the rollback.