Oil Ministry initiates move to raise cap on subsidised gas cylinders

The Petroleum Ministry has initiated the move for an upward revision in the number of subsidised LPG cylinders per household, circulating a cabinet note among various ministries for their comments.

Sources said the note is mum on the proposed number of subsidised cylinders, though the Petroleum Ministry reportedly wants this fixed at nine per household per year.

Any decision will be taken only after the Gujarat Assembly elections in mid-December.

"Since the decision to restrict subsidised cylinders to six per family annually was taken by the Cabinet Committee on Political Affairs (CCPA), we have left the decision on revising this also to the Cabinet," said a source in the Petroleum Ministry.

Since the cap of six on subsidised LPG cylinders, there has been persistent demand from political parties, including UPA allies and opposition, to revise the figure, something that the public sector petroleum companies are opposed to.

The Petroleum Ministry wants the Finance Ministry to give Rs 3,000 crore in addition to the sanctioned subsidy amount if the cap is raised.

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