Oil Ministry considering raising subsidised LPG cap to 12: M Veerappa Moily

Petroleum Minister M Veerappa Moily on Sunday said “the government is considering increasing the yearly quota of subsidised LPG cylinders from nine to 12 per household” even as he indicated a one-time hike in diesel and LPG rates. The final decision on the issue on LPG quota will be taken by the Cabinet Committee on Political Affairs (CCPA), he said.

“I have read in newspapers about Congress Vice President Rahul Gandhi taking up the issue of increasing the LPG cap.. I am yet to get comments from the Congress Vice President or the PM. If that proposal for raising LPG cap)comes, we need to examine pros and cons. Ultimately, the decision will be taken by CCEA or CCPA,” he said. “We are going to take a considered view... We are considering the suggestions.” he told reporters at Noida.

ET was the first to report that the Government would increase the cap on subsidised LPG cylinders from nine to 12. Moily said 89.2% of the 15 crore LPG consumers use up to 9 cylinders in a year and only 10% have to buy the additional cylinders required by the at the market price.

If the quota is raised to 12, about 97%of the LPG consumers would be covered by subsidised LPG, he said. Increasing the limit to 12 would result in an additional fuel subsidy burden of Rs 3,300 crore- Rs 5,800 crore for the government.