No Proposal to Up LPG Bottle Cap - The New Indian Express

No Proposal to Up LPG Bottle Cap

Published: 07th January 2014 09:57 AM

Last Updated: 07th January 2014 09:57 AM

There is no proposal to increase the number of subsidised LPG cylinders from the existing nine to 12 per family per year, Petroleum Secretary Vivek Rae said on Monday.

Speaking to reporters on the sidelines of an industry event, Rae said, “There is no proposal in my ministry.”

State-owned oil firms currently lose `762.70 per cylinder on the sale of subsidised LPG and the government will have to pay higher subsidy if the quota is raised.

With a view to reducing its subsidy burden the government had capped the number of subsidised cylinders to six in September 2012, but raised it to nine later in January 2013 after widespread protests from different quarters, including political parties and the common man.

In fact, Petroleum Minister Veerappa Moily had also made it abundantly clear that there was no proposal before the government to increase the number of subsidised LPG cylinders from the present nine a year to 12.

“We don't have such a proposal before us,” Moily had said in Kochi last week in connection with the formal commissioning of the Petronet LNG terminal at nearby Puthyvype by Prime Minister Manmohan Singh.

However, Finance Minister P Chidambaram had in New Delhi said the government will “take a look” at the demand to raise the quota of subsidised LPG cylinders to 12 per household in a year from the current limit of nine.

Chidambaram had last week stated that there were demands from “several chief ministers” for raising the quota of subsidised cylinders and the government “will look into” them.

Rae said his ministry, as of now, is not processing or proposing any change in the subsidised quota. “I am not aware if there is any decision (on raising the limit) at political level,” he said.

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