Oil firms told to give data on pattern of LPG consumption

Oil firms told to give data on pattern of LPG consumption

The idea of restricting the sale of LPG cylinders at a subsidised rate to maximum of six in a year per consumer was floated by the Petroleum ministry on the basis of the assumption that a majority of the consumers use five to six LPG cylinders of 14.2-kg capacity in a year, sources said.

The state-owned oil marketing firms have been asked to come out with detailed data on the pattern of consumption of LPG cylinders so that the modalities for restricting the sale of gas at subsidised rate can be worked out, sources said.

In the face of growing political sensitivity over the hike in retail prices of petroleum products, the ministry is finding it difficult to push through recommendations of the Kirit Parikh Committee that has suggested fixing the prices of petrol and diesel as per the market rate and an immediate hike of Rs 6 per litre on kerosene and Rs 100 per 14.2 kg LPG cylinder.

-According to the proposal, a consumer can buy a maximum of six LPG cylinders of 14.2-kg capacity each per year at subsidised rate
-For extra cylinders, consumers will have to pay the market price
-Move is to help state-owned oil marketing firms minimise their losses
-Revenue loss is incurred by selling petroleum products below cost prices
-Proposal was floated at a meeting between the ministry and executives of the state-owned oil marketing firms

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