Govt. won’t rollback decision to cap subsidised LPG: source says

Govt. won’t rollback decision to cap subsidised LPG: source saysThe government’s decision to cap supply of subsidised LPG at six cylinders per household per year will not be rolled back as it will hurt the entire economic reform process, a government source said.

Speaking on the condition of anonymity, the source said, “There is no change (in the September 13 decision). If we are to change this, then there will be a shadow (of rollback) cast on the recent reforms like FDI in retail.”

On September 13, the government placed a cap of six on the supply of subsidised LPG cylinders in order to check swelling subsidy bill. After six cylinders, consumers will have to purchase LPG at market price. While a subsidized 14.2-kg cylinder costs Rs 410.42 in Delhi, an unsubsidized LPG cylinder costs Rs 895.5.

When contacted, Oil Minister S Jaipal Reddy said that he had nothing new to say on the topic. However, he declared that all consumers will get three subsidized LPG cylinders during the remaining months of current fiscal year, irrespective of the number of subsidised cylinders they have already consumed before the announcement of the decision.

The government has not placed any cap on the number of non-subsidised LPG cylinders that a household can avail in a year.

Meanwhile, restaurants and institutional kitchens have started revising the prices of their food articles citing a rise in the price of LPG cylinders in spite of the fact that the government has not increased the price of commercial LPG cylinders. It revealed the fact that LPG cylinders for domestic purposes are being used for commercial purposes copiously.