Government has allowed state-owned oil companies to raise the price of kerosene by 25 paise a litre each month for 10 months to cut the subsidy burden. On 1st of this month,kerosene price was hiked by 25 paise a litre which is the first increase in rate of the kerosene in five years.Sources said, Petroleum Ministry has conveyed to oil marketing companies to raise the price by 25 paise every month till April 2017. The first increase has been notified by the oil companies but the rates have so far not reflected in the price of kerosene sold through public distribution system. It will happen after state governments agree.Before the price hike, kerosene costs 14 rupees 96 rupees a litre in Delhi. Its price was last raised by 2.64 a litre in June 2011. The kerosene accounted for 41.7 per cent of the total petroleum subsidy of 27,571 crore rupees in 2015-16.The previous UPA government had taken a similar approach of raising rates in small dosage of 50 paise a litre per month to completely eliminate subsidy on diesel.