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11/12/2012
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cooking gas subsidy cap likely to be raised to 9 cylinders: moily
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new delhi, dec 11 (ians) the government is likely to raise the cap on subsidised cooking gas for households to nine from six cylinders per year, petroleum minister m. veerappa moily said tuesday.
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"i think it is likely to go up definitely from six (cylinders) to nine (cylinders)," he told media persons here.
the minister said the decision to raise the cap will be taken by the union cabinet "very shortly."
the government had in september limited supply of subsidised lpg to six cylinders per household in a year.
subsidised cooking gas costs rs.410.50 per 14.2 cylinder at present. anyone seeking additional requirements has to buy them at the market price of rs.931.
moily said as the capping decision had been taken by the cabinet committee on political affairs, it would also decide on raising the cap.
questioned on a time-frame for the decision, he said: "i think as early as possible."
the government will be required to provide an additional rs.9,000 crore per annum if the subsidy limit is raised.
the petroleum minister said the government was working on a "certain formula" to neutralise the impact of any additional subsidy burden, and he has had two rounds of discussions with finance minister p. chidambaram on the issue.
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