Summary:
"The LPG price is derived based on the international market price for the previous month," the ministry said in a statement. "In view of the subsidised price determined by the government, the subsidised LPG consumers are insulated from the volatility of LPG prices in the international market," the statement said. "Therefore, the impact of the price hike is mostly borne by the government by enhancing the subsidy for subsidized and PMUY consumers," it said. The price hike announced by oil companies on Wednesday was the steepest in six years. Domestic LPG users are entitled to buy 12 bottles of 14.2-kg each at subsidised rates in a year..