LPG subsidy to dip Rs12,629 cr after cap on gas cylinders | business | Hindustan Times
Today in New Delhi, India
Jun 26, 2017-Monday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

LPG subsidy to dip Rs12,629 cr after cap on gas cylinders

Restricting the number of subsidised LPG cylinders to four a year — a proposal likely to be considered by the EGoM on Friday — will bring down the government's annual subsidy burden by Rs12,629 crore. Anupama Airy reports.

business Updated: Sep 15, 2011 21:29 IST
Anupama Airy

Restricting the number of subsidised LPG cylinders to four a year — a proposal likely to be considered by the Empowered Group of Ministers (EGoM) on Friday — will bring down the government's annual subsidy burden by Rs12,629 crore.

The government's contribution towards subsidising LPG cylinders stood at Rs23,746 crore in 2010-11 and it is likely to touch Rs29,011 crore in this fiscal.

Consumers of LPG cylinders are now paying Rs270 less on every cylinder. "Around 20% of customers, including the BPL households, consume less than four refills per year. Thus BPL households remain unaffected with a limit of four subsidised refills per year," government sources said.

The government is expected to review prices of gas cylinders on a monthly basis if the EGoM gives nod for capping the number of subsidised cylinders.