Petroleum minister M Veerappa Moily on Tuesday said the Cabinet is likely to consider this week a proposal to raise the cap on subsidised domestic cooking gas cylinders to 12 a year from the current nine per household.
“After our vice-president Rahul Gandhi said nine cylinders are not enough, I have moved a Cabinet note to increase the quota to 12... I think the Cabinet is likely to consider the proposal this week,” Moily said after launching the sale of 5-kg cooking gas (LPG) cylinders at petrol pumps in the national capital.
These 5 kg LPG cylinders will be available across 18 petrol pumps in Delhi and NCR for `585 per cylinder. Customers can just walk into a petrol pump with proof of identity.
Gandhi had said at the All India Congress Committee session last week that there was a need to increase the quota to 12 cylinders of 14.2-kg each.
Moily said 89.2% of the 15 crore LPG consumers use up to nine cylinders per year and only 10% have to buy the additional requirement at market prices. If the quota is raised to 12, then about 97% of the LPG consumers would be covered by subsidised LPG, he added.
Increasing the limit to 12 would result in an additional fuel subsidy burden of Rs 3,300-4,000 crore for the exchequer. The government already incurs about `46,000 crore per annum as LPG subsidy.
A subsidies LPG cylinder costs `414 in Delhi while a non-subsidised cylinder costs Rs. 1,258.