LPG cylinders are set to get expensive as the Delhi government, dilly-dallying over the decision to remove the subsidy of Rs 40 per cylinder, is expected to decide the matter on Tuesday during a Cabinet meeting.

There are two proposals for the Cabinet to consider: either to completely remove the subsidy of Rs 40 per cylinder, or to cut down the subsidy by Rs 25 and continue to give Delhiites a relief of Rs 15 per cylinder.

“The subsidy has been costing the government exchequer Rs 165 crore. The government is facing a severe cash crunch at present and cannot afford the subsidy,” a senior government official said. If the Cabinet approves the second proposal, it will still spend nearly Rs 60 crore per year on LPG subsidy. Gas cylinders are at present available in Delhi for Rs 280 each.

In January this year, the Union government had reduced the price of cylinders by Rs 25. The Delhi government, though, continued with the subsidy as the Lok Sabha elections were just months away.

“The idea now is that since the Union Government has reduced the price by Rs 25, we can easily cut the subsidy by Rs 25, maintaining a status quo in the price,” added the official on Friday.

The Delhi government had announced LPG subsidy in June last year, ahead of the Assembly polls after the Union Ministry hiked the price of LPG cylinders by Rs 50. The Delhi government instead gave relief by hiking the price by merely Rs 10.

... contd.