LPG cylinder cap raised to 12, Aadhar-linked subsidy suspended

The Cabinet Committee on Economic Affairs (CCEA) at its meeting today approved a hike in the annual quota of subsidised LPG cylinder per household from nine to 12.

The government had, on 17 January, announced plans to raise the quota of domestic LPG to 12 per year, following demand by Congress vice president Rahul Gandhi.

''In addition to the nine subsidised cylinders, people will get one cylinder each in February and March. Beginning 1 April, people will get 12 cylinders per year at the rate of one cylinder per month,'' petroleum minister Veerappa Moily said at a press conference after the Cabinet meeting

He said this would raise the annual subsidy burden on the government to around Rs80,000 crore.

Information and broadcasting minister Manish Tewari said the government has put on hold the scheme of linking Aadhar numbers to LPG subsidy payment for now.

An increase in LPG subsidy is expected to help the ruling Congress in the Lok Sabha elections due in May this year.

According to Moily, only 89.2 per cent of the 150 million LPG consumers in the country use up to nine cylinders in a year and only 10 per cent have to buy the additional cylinders.

With the hike in quota to 12, about 97 per cent of the LPG consumers would be covered by subsidised LPG, he added.

AT present, LPG consumers who have exhausted their quota have to buy LPG at the market price of Rs1,258 per cylinder against the Rs414 per 14.2 kg cylinder they pay in Delhi or Rs450 in Mumbai.