Oil Minister M Veerappa Moily has underscored that the Cabinet is likely to consider hiking the quota of subsidized cooking gas cylinders to 12 from 9 per household this week. The move follows Congress vice president Rahul Gandhi request for a higher LPG cap in All India Congress Committee session last week,
Moily pointed that 89.2% of the 15 crore LPG consumers use up to 9 cylinders in a year and only 10% have to buy the additional requirement at the market price and further, if the quota gets increased, about 97 percent of the LPG consumers would be covered by subsidized LPG.
Increasing the limit to 12 cylinders per household for a year would result in an additional fuel subsidy burden of Rs 3,300-4,000 crore. The government already incurs about Rs 46,000 crore per annum as LPG subsidy. The government, back in September 2012, capped the supply of subsidized domestic LPG cylinders to 6 per household annually and later raised the same to 9 in January 2013.
Moily pointed that 89.2% of the 15 crore LPG consumers use up to 9 cylinders in a year and only 10% have to buy the additional requirement at the market price and further, if the quota gets increased, about 97 percent of the LPG consumers would be covered by subsidized LPG.
Increasing the limit to 12 cylinders per household for a year would result in an additional fuel subsidy burden of Rs 3,300-4,000 crore. The government already incurs about Rs 46,000 crore per annum as LPG subsidy. The government, back in September 2012, capped the supply of subsidized domestic LPG cylinders to 6 per household annually and later raised the same to 9 in January 2013.
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