A good nine hours after public sector oil marketing companies had announced a Rs 26.5 per cylinder hike in non-subsidised domestic LPG prices, the Government asked them to put the hike on hold.
Thus, till further announcement, the price will remain at the October level of Rs 895.50 (Delhi) for every 14.2 kg non-subsidised domestic LPG cylinder. However, no formal communication was sent to the OMCs on the decision.
There are indications that the Himachal Pradesh elections, due on November 4, was the reason for the Government developing cold feet.
“This Government decision has created more confusion among all the stakeholders, who are still trying to come to terms with the decision on capping the number of subsidised LPG cylinders available for each household in a year,” a senior oil company official said.
Industry observers say that the Government should not, for one moment, think that the consumer doesn’t realise that this is just a political move.
In September, the Government had restricted the supply of subsidised domestic LPG cylinders to six a year per household. While capping the number of subsidised cylinders, the Government had allowed the OMCs to charge market rate for non-subsidised LPG cylinders and also notify the rates on a monthly basis.
Since then, a miniscule number of consumers – whose annual consumption is higher than the six-cylinder limit – have purchased their seventh cylinder at market price.
The demand for non-subsidised domestic LPG cylinders was seen in the last week of October from those consumers who had exhausted their quota of three subsidised cylinders for this fiscal from September 15.
The price of subsidised domestic LPG cylinders remains unchanged at Rs 399 per cylinder (Delhi).
Also, speculations are rife that the Government will also increase the cap limit of subsidised domestic LPG cylinders from six to maybe nine a year.
Keywords: LPG cylinders, non-subsidised domestic LPG prices, LPG price, domestic LPG price, subsidised LPG, analysis,
Comments:
In less than 24 hours the decision taken by the OMC is reversed and
the action raise the LPG prices put on hold. This is what makes the
Government appear weak and inconsistency in walking the talk is
breeding lack of confidence in this Government whose popularity is at
is lowest. It would have been wiser not to announce any increase and
in less 24 hours if it had to be reversed only means some personal
intervention of Politics over Economics and one may take it as Sonia
Gandhi's instruction to PM. The crude prices have been falling and
there was no reason for any increase yet if it is announced then it
must be followed rather then going step back.
Mr. Jaipal Reddy and Mr. Moily are just figure head in this ministry
and it is controlled by a Remote control. To that extent Mr. Arvind
Kegriwal is right in his allegation.
It is unfortunate that political parties are more interested in electoral gains from petroleum products’ pricing. Citizens want implementation of a rational and long term policy with regard to prices of diesel, petrol kerosene and LPG. Crude price is unlikely to fall in international markets. In the light of this fact Citizens are unable to understand why our major political parties are not ready to agree to put in place right policy about fixation of prices of petroleum products. Such a policy would have also to consider the case for specific duties and taxes instead of taxes calculated as percentage of some value. Irrational demand for 24 subsidized LPG cylinders made by Ms Mamata Banerjee some time back is a poor indicator of our politicians’ home work about prices of petroleum products. Of course, BJP and other parties are no d9ifferent in this respect
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