Moily hints at increasing subsidised LPG cap to 12

M Veerappa MoilyThe government may increase the quota of subsidised LPG (cooking gas) cylinders from current 9 to 12 per household per year, Oil Minister M Veerappa Moily hinted on Sunday.

Moily said Congress Vice President Rahul Gandhi was taking up the issue of increasing the quota of subsidised LPG cylinders with the Prime Minister. He claimed that he was yet to receive any proposal from the Congress Vice President or the Prime Minister on the matter. He added that the final decision would be taken by the Cabinet Committee on Political Affairs (CCPA).

Speaking to reporters, he said, "If that proposal (for raising LPG cap) comes, we need to examine pros and cons . the decision will be taken by CCEA or CCPA. We are going to take a considered view... We are considering the suggestions."

It may be noted here that Moily last week said that there was no proposal to increase the subsidised LPG quota from 9 to 12 cylinders per household per year.

Any increase in the quota would mean the subsidy the government bears on fuel supplies would soar.

The Congress-led UPA Government had initially capped the supply of subsidised LPG cylinders to six per household per in September 2012. The move aimed at cutting the government's massive subsidy bill. But, the political pressure forced the government to increase the quota to nine cylinders per households per year in January 2013.

Consumers who have exhausted their quota have to buy LPG at the market price of Rs 1,258 per cylinder.