This news may not go well with weaker section of the society. It is believed that the government has taken further steps to gradually reduce subsidy on kerosene, one of the major money drainer for the Government. The Government has earlier announced that the rate of the LPG cylinder would be raised slowly from March next year at the rate of Rs.4 per month until it reaches no subsidy. The news has been misunderstood by many who thought Government would take off all at a stretch. It is not the case in reality and only dual connections would be devoid of subsidy.
Government has asked state oil companies to keep raising prices of subsidised kerosene by 25 paise every fortnight until the subsidy is eliminated, or until further orders, sources said. The oil ministry had earlier ordered a similar increase only up to July this year. The effective rise would result in increase of 50 paise a month.
The fuel is still heavily subsidised though the Government has advised oil companies to keep changing the rates on a daily basis inline with International market. On the other hand, demand for kerosene is falling sharply because villages are being electrified and they are also getting the cooking gas connections.
Kerosene consumption has fallen 21 per cent to 66,78,447 kilo litres in 2016-17.