In a decision that will have a direct impact on family budgets, the government of India has increased the price of LPG (liquefied petroleum gas) cylinders by ₹50 per cylinder. The prices are effective immediately and represent the first such increase in months, attributing the move to fluctuations in the global energy market.
Even with this hike, Finance Ministry officials made it clear that consumers will not be charged more for petrol and diesel duties. This move is part of a larger strategy to deal with inflation and maintain transportation and logistics costs steady.
Experts opine that the LPG price increase is likely to hit most in urban and semi-urban middle-class families, as these segments are comparatively more dependent on gas cylinders for cooking. Yet, government subsidy schemes for the poor continue to be operational, and any reform in those schemes has not been proclaimed so far.
Although the hike is likely to bring in considerable extra revenue, consumer advocacy groups have called on the government to make more gradual price increases and increase targeted subsidies for those worst hit by the rise.
