Over a million LPG connections issued since subsidy cap: minister

Public sector oil marketing companies (OMCs), including Indian Oil Corporation Limited (IOC), Bharat Petroleum Corporation Limited (HPCL), have issued around 10,17,290 LPG connections after the government ordered a cap on subsidised cylinders.

They have also reported that action has been taken against erring distributors in 1,480 established cases of diversion during the period from September 2009 to September 2012, minister of state for petroleum and natural gas Panabaaka Lakshmi informed the Lok Sabha in a written reply today.

The minister said demand for commercial LPG cylinders has increased on par with domestic LPG cylinders during the last three years.

Meanwhile, minister of petroleum and natural gas M Veerappa Moily informed the Lok Sabha that the ministry is looking into various representations received to revise the annual cap on LPG cylinders.

As per the decision of the cabinet committee on political affairs (CCPA), the minister said, the price of cylinders beyond the cap of 6 per year would be available at market rate to be notified by the public sector oil marketing companies on a monthly basis.

Further, the minister said, the per unit subsidy provided by the government on the LPG cylinders increased from Rs200.71 in 2009-11 to Rs272.52 in 2010-11 and to Rs342.88 in 2011-12. He said the government is currently paying a subsidy of Rs405.67 per 14.2-kg LPG cylinder meant for domestic consumption.