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Govt freezes LPG subsidy at Rs. 20 a kg - ABN

Wed, Nov 12, 2014, 04:56 PM
The Central government has fixed the budget subsidy for cooking gas at Rs. 20 a kg. This will not mean that the price on LPG will increase for the consumer. This will help government to push the oil companies to ensure the gas to reach poor people who need the subsidy more but are unable to afford the bigger cylinders. However, if international prices were to rise, then the government will be faced with the choice of either passing on the increased price to consumers or asking the oil companies to bear the burden.
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