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How Increase in Diesel, LPG restriction Makes difference?

" Government has announced an Increase of Rs.5.62 / Litre and Imposed a restriction on the supply of subsidized cooking gas(LPG) to 6 cylinders/year per household."

Whats makes the difference is the biggest question?

LPG is now costing Rs.399/cylinder, and assuming an household comprising of 5 members, each cylinder lasts for 30-40days. Which means 9-10 cylinders are required per year, and without subsidy the household cylinder cost around Rs.750/- ie., a burden of Rs350. on each and approximately Rs.1100-Rs.1400/year.

" The burden is not only on Aam Aadmi (common man), but also on Aam Aurat(common women) too."

Increasing petrol prices has lead to demand for Diesel over a period of time, and this was effectively capitalized by automobile companies where they shifted there production from petrol vehicle to diesel consumption vehicle, forcing to export/ sell at discount price of petrol cars. But now, the demand for diesel cars is expected to fall down because of this continuous rise in prices.

And it should be noted that, majority of our Manufacturing/Logistics/Infrastructure Industry(CMIE report) are still dependent on diesel only, which automatically the cost push will occur, where ultimately the burden is on end user, where the prices on every necessity will go up, from soaps to vegetables the effect will be observed.

Which Sector/Industry will be happy with this decision?

Though every industry more or less will be affected with this move, but for sure companies like Bajaj, Morphy Richards, Prestige, LG, will be happy because they can now sell more INDUCTION COOKERS, MICROWAVE.


  1. Rather just keep on increasing the fuel prices, oil companies must found the way out how to reduce the total operational cost. We have never seen that in news that the fuel prices gone down becuase of reduced operational cost of Oil companies.

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