Government considers hiking subsidised LPG to 12 cylinders

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Greater Noida, Jan 12 (IANS) The government is considering increasing the quota of subsidised cooking gas (LPG) cylinders from nine to 12 per household in a year, Petroleum Minister M. Veerappa Moily said Sunday.

“I have read in the newspapers about (Congress vice-president) Rahul Gandhi taking up the issue of increasing the LPG (Liquefied Petroleum Gas) cap with the prime minister. I am yet to get comments from the Congress vice-president or the prime minister,” he told reporters at the Petrotech 2014 conference here, on the national capital’s outskirts.

The minister said the final decision in the matter will be taken by the Cabinet Committee on Political Affairs (CCPA).

Pointing out that around 89 percent of the 15 crore LPG consumers use up to nine cylinders a year, while only 10 percent have to buy the additional requirement at market prices, Moily said if the quota is raised, about 97 percent of LPG consumers would get subsidised LPG.

“If that proposal (for hiking the LPG cap) comes, we need to examine pros and cons. Ultimately, the decision will be taken by CCEA (Cabinet Committee on Economic Affairs) or CCPA (Cabinet Committee on Political Affairs),” he said.

“We are going to take a considered view, we are considering suggestions,” Moily said.

Increasing the cap to 12 cylinders would result in an additional fuel subsidy burden of between Rs.3,300 crore-Rs.5,800 crore for the government.

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