Food Minister K V Thomas suggests “slab system” for cooking gas price

Food Minister K V Thomas suggests “slab system” for cooking gas priceThe government should introduce a "slab system" for cooking gas, where the price would increase by Rs 50 for the six cylinders beyond the first six subsidized cylinders, Food Minister K V Thomas has reportedly advised.

The government recently capped the number of subsidized LPG cylinders at six a year. Beyond that limit, households would have to purchase cylinders at a full market price of Rs 746 each.

The decision triggered severe criticism, forcing many in the government to consider other options.

Mr. Thomas has reportedly written a letter to Prime Minister Manmohan Singh, suggesting that first six cylinders should be given at subsidized rates, and the price for the next six should be increased by Rs 50 per cylinder. For the next 12 cylinders, the price can be increased by Rs 150 each. Any LPG cylinders above 24 cylinders per year limit should be made available at full market rates.

Meanwhile, the Delhi government has announced that it would give poor families nine subsidised LPG cylinders per year, instead of the six as declared by the Centre. The difference between the subsidised price and the market price, which is nearly Rs 350 a cylinder, will be paid by the Delhi government.

The Delhi Government's move is expected to help as many as 3.5 lakh poor families, which were provided with free gas connections under the government's "Kerosene-free Delhi" campaign. The concession will cost the state exchequer an estimated of around Rs 40 crore per year.