Subsidised LPG hike of rupees ten per month
- 5 years ago
The government's first budget is likely to signal the new administration's intention of reforming India's fuel pricing regime with monthly hikes of Rs. 10 per cylinder of cooking gas (LPG).
Each household will, however, continue to be entitled to 12 subsidised cylinders a year. Currently, a subsidised LPG cylinder costs Rs. 414 in Delhi while the market price — which consumers pay for any demand beyond the quota — is Rs. 905.
If implemented, the Rs. 10 monthly hike will slash Rs. 7,000 crore from India's mounting fuel subsidy bill.
The government on Friday also pushed through a steep hike in railway passenger and freight fares in possibly the first instalment of the "tough measures" Prime Minister Narendra Modi had hinted at as necessary to revive the Indian economy.
The hike — 14.2% in all classes of passenger fares and 6.5% in freight charges — is effective June 25 and will also apply to tickets purchased in advance for journeys commencing on or after that date. The difference in fare for such advance tickets will be collected by ticket examiners during the journey.
Coming ahead of the full railway budget next month, the announcement was greeted with loud protests by leaders across the political spectrum, with some warning it would fuel inflation.
Fuel subsidies could exceed 1.40 lakh crore this year, following soaring crude oil prices due to the current crisis in Iraq.
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Each household will, however, continue to be entitled to 12 subsidised cylinders a year. Currently, a subsidised LPG cylinder costs Rs. 414 in Delhi while the market price — which consumers pay for any demand beyond the quota — is Rs. 905.
If implemented, the Rs. 10 monthly hike will slash Rs. 7,000 crore from India's mounting fuel subsidy bill.
The government on Friday also pushed through a steep hike in railway passenger and freight fares in possibly the first instalment of the "tough measures" Prime Minister Narendra Modi had hinted at as necessary to revive the Indian economy.
The hike — 14.2% in all classes of passenger fares and 6.5% in freight charges — is effective June 25 and will also apply to tickets purchased in advance for journeys commencing on or after that date. The difference in fare for such advance tickets will be collected by ticket examiners during the journey.
Coming ahead of the full railway budget next month, the announcement was greeted with loud protests by leaders across the political spectrum, with some warning it would fuel inflation.
Fuel subsidies could exceed 1.40 lakh crore this year, following soaring crude oil prices due to the current crisis in Iraq.
For More information on this news visit: http://www.itvnewsindia.com/
For More information on this news, visit: http://www.indianews.ind.in/
Connect with us on Social platform at: http://www.facebook.com/IndiaNewsTV
Subscribe to our You Tube channel: https://www.youtube.com/user/itvnewsindia
Connect with us on Social platform at: https://www.facebook.com/pages/India-News/371196196360607