Govt. raises LPG cap to 9 cylinders per year

Even as the Cabinet gave its nod on Thursday to raise the cap on supply of subsidised LPG cylinders to nine bottles from six per year per household, the oil marketing companies (OMCs) were gearing up to marginally raise the diesel prices, which could happen by tonight itself.

The Cabinet Committee on Political Affairs (CCPA), that met under the leadership of Prime Minister Manmohan Singh, authorised the OMCs to periodically raise the diesel prices in small quantum to cover up the Rs. 9.60 paise per litre loss being incurred by them. However, the government refused to come clear on the quantum of the hike and how and in what period of time the entire loss on sale of diesel will be wiped out. The Cabinet decision came on the note submitted by the Petroleum Ministry based on the recommendations of the Kelkar Committee.

As soon as the Cabinet decision came, the marketing departments of the OMCs got down to the business of calculating the proposed hike. “We are still awaiting the notification from the government before deciding on the quantum of hike. We have been given a brief on the issue and indirectly we will have to take the consent of the Petroleum Ministry before undertaking any kind of hike in diesel prices,” a senior OMC official said.

Emerging out of the Cabinet meeting, Petroleum and Natural Gas Minister, Veerappa Moily said there will be no change in LPG and kerosene rates. “I am happy to inform the CCPA has decided to raise the cap on subsidised LPG to nine cylinders per household in a year from existing six cylinders. Consumers will get a quota of five subsidised cylinders between September 2012 and March 2013 and from April 1, 2013, they will be entitled to nine cylinders per annum,’’ he remarked.

Mr. Moily also refused to provide details of diesel price increase, but hinted that the hike could happen as early as Thursday night.

(The Hindu)