Cap on subsidised LPG proposed

Cap on subsidised LPG proposed

This move is aimed at helping state-owned oil marketing firms minimise their losses.
It has been proposed that a consumer can buy a maximum of six LPG cylinders of 14.2-kg capacity each per year at subsidised rate. For an extra cylinder above this cap, the consumer will have to pay the market price.

This proposal is understood to have been floated by the Petroleum Ministry itself to help the state-owned oil marketing firms cut down some chunk of the massive revenue losses being incurred by them by selling petroleum products below cost price, highly placed sources in the ministry told Deccan Herald.        

The three major state-owned oil marketing firms – Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum – are estimated to have made a revenue loss of Rs 47,960 crore on selling four mass-consumed petroleum products – petrol, diesel, domestic LPG and kerosene – below cost price in the 2009-2010 fiscal.

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