Cooking gas more expensive by Rs60 as from Tuesday

As the State Trading Corporation faces a hole of Rs 2.9 billion swallowed as subsidies on Liquefied Petroleum Gas (LPG), rice and flour, the Ministry of Commerce has just ratified a massive 33.3% increase in the price of household gas.

As from Tuesday morning, the price of a 12kg LPG cylinder costs Rs240 instead of Rs180 – representing an increase of Rs60.

The 5 kg cylinder costs Rs 100, while the 6 kg cylinder will be sold at Rs 120 per cylinder instead of Rs90.

Explaining the increase, the STC said it is currently buying LPG at Rs670 and selling it at Rs180.

“This was no longer sustainable. Even at the new price, the STC subsidises LPG to the tune of Rs400,” Defi Media cited an STC spokesperson as explaining.

Gasoline and diesel to follow suit?

Defi Media reported that the Petroleum Pricing Mechanism (PPC) could also be meeting in the days to come. On the agenda: A probable new increase in the price of gasoline and diesel.

“Prices are going up internationally. An increase should not be ruled out,” STC’s Rajiv Servansingh was quoted as saying.

According to media reports, public transport and electricity could also be hit with significant increases soon.