Thursday, 17 January 2013

Govt raises LPG subsidy cap, now 9 cylinders a year

The government on Thursday raised the annual cap on supply of cheap cooking gas to nine cylinders from six and gave freedom to state-run oil companies to raise price of diesel "from time to time".
The new cap on cooking gas would come into effect from April 1, oil minister said after the meeting of the Cabinet's panel on political affairs that took the decisions. 
As a fallout of the higher cap, the consumers would now be able to avail five cheap cylinders between September 14 last year, when the cap was imposed, and March 31 this year. This level was earlier set at three cylinders during the period. 
The increase in the cap on subsidized cooking gas cylinders would come as a relief to consumers. More so since it did not come with an increase in the current price, as was suggested by a finance ministry panel. Together, the two would help blunt some of the political criticism that is expected from the Opposition parties. 
Source : Times of India.

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