No proposal to raise subsidised LPG cap: Petroleum Secretary

FM had last week stated that there were demands from 'several CMs' for raising the quota of subsidised cylinders

The government has no proposal before it to raise the quota of subsidised LPG(liquified petroleum gas) cylinders to 12 a household in a year from the current limit of nine, Petroleum Secretary Vivek Rae said on Monday. “There is no proposal in my ministry,” he told reporters on the sidelines of an industry event in New Delhi.

Finance Minister P Chidambaram had last week said there were demands from “several chief ministers” for raising the quota of subsidised cylinders and the government “will look into them”.

Rae said his ministry, as of now, is not processing or proposing any change in the subsidised quota. “I am not aware if there is any decision (on raising the limit) at political level,” he said.

With a view to cut its subsidy bill, the government had capped the supply of subsidised domestic LPG cylinders to six a household in a year in September 2012.

The quota was raised to nine bottles a household a year in January 2013.

Officials said state-owned oil firms currently lose Rs 762.70 per cylinder on the sale of subsidised LPG and the government will have to pay higher subsidy if the quota is raised.