Govt rules out rollback of decision to cap subsidised LPG

The government today ruled out a rollback or modification of its decision to cap supply of subsidised cooking gas (LPG) at 6 cylinders per household in a year as it will cast a "shadow" on the whole reform process.

"No, absolutely not. There is no change (in the September 13 decision)," a top government source said.

The government had on September 13 decided to cap supply of subsidised LPG with a view to check burgeoning subsidy bill. Any requirement over and above the six subsidised bottles would have to be procured at market price.

Accordingly, households will get six cylinders of 14.2-kg each at subsidised price of Rs 410.42 in Delhi and for any requirement above this, they would have to pay Rs 895.5 per bottle.

"If we are to change this, then there will be a shadow (of rollback) cast on the recent reforms like FDI in retail," the source said.

On his part, Oil Minister S Jaipal Reddy said, "I have nothing new to say on this."
He, however, clarified that all consumers, irrespective of how many subsidised LPG cylinders they may have consumed in the first half of current fiscal that began in April, will get will three 14.2-kg LPG cylinders at subsidised rates during the period till March 31, 2013.

"There is no ambiguity on that," he told reporters here.
There is no restriction in the number of domestic non-subsidised cylinders that consumers can avail beyond the three subsidised LPG refill cylinders allowed in current year.
Effective April 1, 2013, LPG consumers can avail six domestic subsidised LPG refill cylinders per financial year.

There will be no restriction on the number of domestic non-subsidised cylinders that consumers can avail, beyond the six subsidised cylinders to meet their genuine demand.

Officials said for reticulated LPG consumers or piped LPG, the number of cylinders to be supplied at subsidised rates to the Housing Society will be limited to the net entitled quantity based on individual consumption but not more than 3 cylinders of 14.2 kg till March 2013 and not more than 6 cylinders per annum from April 1, 2013.

The entitlement will be fixed based on the number of flats occupied at the beginning of the capping year.

Consumers using reticulated system will not be allowed to hold individual LPG connections.

The Oil Marketing Companies have also undertaken the Know Your Customer (KYC) exercise in a phased manner starting with the consumers identified as having multiple connections, he said.

New connections are also being released after receipt of completed KYC forms and multiple connection check.