Government today decided to increase the cap on subsidised LPG cylinders from 6 to 9. The move will be effective from April onwards, said petroleum and natural gas minister Veerappa Moily.
In September 2012, the government had limited the cap to 6 cylinders a year. Oil companies have also been allowed to revise diesel prices periodically.
The decision in in line with the Kelkar Committee which had recommended phased decontrol of diesel prices and LPG.
The government was considering diesel and LPG price hike as the marketing companies were facing a revenue loss of more than Rs 1,60,000 crore.
The government was actively considering a hike in price of diesel prices which was being sold at a revenue loss of Rs 9.60 a litre.
On Tuesday, Delhi saw a 32 paise hike in petrol prices, the increase in rates was due to withdrawal of VAT exemption in June last year, the first hike since November 2012.
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