Government may cap supply of subsidised LPG at 4-6 a year
15 Sep 2011
The empowered group of ministers (EGoM), headed by finance minister Pranab Mukherjee is expected to consider limiting the supply of subsidised LPG cylinders to 4-6 per household in a year, with a view to limit the government's subsidy bill.
"The EGoM meeting is scheduled for tomorrow afternoon," an oil ministry official said.
Under the proposal, households will have to pay market price of Rs666 per cylinder of LPG beyond the quota of 4-6 cylinders provided at the subsidised price of Rs395.35 in Delhi.
This measure is expected to save Rs20,000 crore in subsidy outgo for the government a year.
The limited supply of subsidised LPG would be for those who own a car, two-wheeler, house or figure in the income-tax list, the official said.
The 4-6 number has been arrived at based on the calculation that a household can use each 14.2-kg bottle of LPG for 45-60 days.
Against this, records with LPG distributors show a vast number of households are taking as many as 20-30 cylinders each year.
This may also include diversion of subsidised cooking gas for use in commercial establishments, such as restaurants and dhabas and as auto fuel.
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