ibnlive » Politics

Dec 11, 2012 at 08:05pm IST

Veerappa Moily says LPG cap could be raised, Govt sources say no decision yet

New Delhi: Petroleum and Natural Gas Minister Veerappa Moily on Tuesday indicated that the cap on the number of subsidised LPG cylinders a family can buy per year could be raised. Speaking to reporters, Moily said that the cap could be raised from six cylinders to nine.

However, Finance Ministry sources said that no decision had been taken over the matter yet.

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Moily had said that the Cabinet would take the final call over the issue. He added that he had held discussions with the Finance Ministry and an announcement could be expected soon.

The government had in September capped supply of subsidised LPG to six cylinders per household in a year. Any additional requirement is to be bought at market price of Rs 931 per 14.2-kg bottle.

Subsidised LPG costs Rs 410.50 per cylinder at present. Moily said the decision to raise the cap will be taken by the Cabinet "very shortly". The original decision to cap supply at 6 cylinders was taken by the Cabinet Committee on Political Affairs on September 13 and the decision to raise it would also have to be taken by the Cabinet panel, he said.

"I think as early as possible," he added. The government will have to provide an additional Rs 9,000 crore annually if the cap is raised. "We are working on that," he said on ways to mitigate the additional subsidy requirement. "We are working on certain formula to neutralise it."

With additional information from PTI