No move to raise cap on subsidised LPG: oil secretary

07 Jan 2014

1

Countering reports that the union government is likely to raise the number of subsidised LPG or cooking gas cylinders per household to 12 a year from the current limit of nine as a sop in an election year, petroleum secretary Vivek Rae said on Monday that no such move is on the cards.

''There is no (such) proposal in my ministry,'' he told reporters in New Delhi on the sidelines of an industry event.

Finance minister P Chidambaram had said last week that there were demands from ''several chief ministers'' for raising the quota of subsidised cylinders, and the government ''will look into'' the matter.

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.

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

Officials said state-owned oil marketing companies currently lose Rs762.70 per cylinder on the sale of subsidised LPG, and the government will have to pay higher subsidy if the quota is raised.

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