The state owned oil marketing companies have hike the LPG(liquified petrol gas) and CNG(compressed natural gas) prices.State-owned oil firms have hiked auto LPG prices by Rs 6 per litre and CNG has been increased by INR 4.70 per kilogram,these is the third increase in this year 2012.
Last month March 1st, 2012 auto LPG hiked the price upto Rs.3 (i.e Rs.40.7 to Rs.43.65). Now another hike up to Rs.6. Now, Auto LPG cost Rs 49.72 per litre as against Rs 43.65 per litre.
The Indian government heavily subsidizes the domestic LPG, which is used for cooking, across India. So, the prices of the domestic LPG has remained untouched by this latest price hike. The public sector oil marketing companies revise prices of LPG each month, by aligning domestic prices with international crude oil prices.
Therefore, any price change in the international crude oil prices gets directly reflected on prices of automobile LPG and CNG in the Indian market.