Amid rising crude oil prices, govt may have headache on cooking gas subsidy

The Rs 217 bn budgeted as subsidy this year might be well overshot

While petrol and diesel prices have risen to historic highs, it is that of cooking gas that is likely to be a bigger cause of concern for the government and its three oil marketing companies (OMCs).

Experts believe for 2018-19, with global prices moving to a higher range, the government subsidy for liquefied petroleum gas (LPG) is likely to be at least Rs 110 billion higher than the budgeted Rs 217 bn.

Since product prices are benchmarked to their respective global indices, the OMCs have increased the price of a non-subsidised LPG cylinder by Rs 35.50 to Rs 653.50, as against Rs