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LPG may get costlier
Published on 21 Dec. 2010 12:09 AM IST
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The oil ministry plans to raise cooking gas prices by Rs 50-100 per cylinder as the international price of liquefied petroleum gas has jumped by almost 66% since August. The rise in global prices is hurting state-run oil firms as India imports 3 million tonnes of LPG a year, according to Economic Times. The government will, however, take a decision on Wednesday only after weighing the political implications of a hike against the need to shore up the finances of companies such as Indian Oil Corp , which plans to raise Rs 20,000 crore from a public issue in 2011. International price of LPG has soared due to winter demand, and consequently the subsidy on every cylinder is set to jump to Rs 367 per refill from January 1, which is more than the retail price of Rs 345.35 in the Capital.
, two officials with direct knowledge of the matter said.
The oil ministry will seek the approval of the empowered group of ministers (EGoM), which is also expected to consider higher diesel rates, when it meets on Wednesday, officials said.
“We can’t tell the quantum of price hikes (of cooking gas and diesel) as the EGoM is the deciding authority. We will merely place facts before it,” an oil ministry official said. The decisions of the EGoM are final and do not require the cabinet’s nod.

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