Millennium Post

Centre to ‘look into’ demand to raise subsidised LPG quota

‘There is a request that the subsidised cylinders be increased from nine to 12...It came from several chief ministers,’ finance minister P Chidambaram told reporters.

There have also been demands to roll back the hike of Rs 220 per cylinder of non-subsidised cooking gas (LPG), which customers buy after consuming their quota of nine subsidised cylinders.
Each non-subsidised 14.2-kg cooking gas cylinder currently costs Rs 1,241 in Delhi, about three times more expensive than a cylinder of subsidised LPG.

‘I am not sure whether the petroleum ministry has actually operationalised the increase in price of non-subsidised cylinders. We will take a look both at the proposal (for a rollback in price) as well the demand from some quarters that nine subsidised cylinders should be increased to 12,’ Chidambaram said.

With a view to cut its subsidy bill, the government had capped the supply of subsidised domestic LPG cylinders to six per household in a year in September 2012. The quota was raised to nine bottles per household a year in January 2013.

Officials said state-owned oil firms currently lose Rs 762.70 per cylinder on the sale of subsidised LPG and if yesterday’s hike is to be rolled back, the government will have to increase subsidy.
Meanwhile, senior minister Vayalar Ravi has also sought its reconsideration.

‘It is quite natural that people will protest against this decision. Government should think about a solution to address the people’s concern,’ Ravi told reporters on the sidelines of a function here.
He was responding when asked about the decision yesterday to effect a steep hike of Rs 220 per cylinder of non-subsidised LPG.
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