It is for Oil Ministry to consider raising LPG cylinder cap: FM

Amidst demands from within the Congress party to increase the limit on supply of subsidised LPG cylinders, Finance Minister P Chidambaram on Sunday said it was for the Petroleum Ministry to bring a proposal for raising the cap if it feels so.

“Supply of six subsidised cylinders (per household in a year) was decided by the Cabinet based on the proposal that came from the Ministry of Petroleum and Natural Gas. (Now it is) for them to rework it, if they feel it needs to be reworked,” he told in an interview.

Consumers have to pay a rate which is more than double the subsidised price of Rs 410.50 per 14.2-kg cylinder for any requirement beyond their quota of six cylinders in a year.

At the recent party conclave at Surajkund, there was a demand for raising the cap to 12 cylinders per household in a year.

Even the new Oil Minister M Veerappa Moily had earlier this month admitted that the decision, taken during term of his predecessor S Jaipal Reddy, had caused hardships.

For a government which stares at the prospect of having to pay Rs 80,000-100,000 crore towards fuel subsidies this fiscal, raising the cap would mean additional outgo and Chidambaram was categorical in stating that the Oil Ministry should consider finances before moving any note.

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