The Union Government of India on 17 January 2013 hiked a cap on the subsidized LPG Cylinders from 6 to 9 and offered a partial relief to the consumers of LPG cylinders. This move of the Union Government would come into effect from April 2013.
As per the orders of the Government and the decisions made by the Cabinet Committee on Political Affairs (CCPA) the rate of the kerosene and LPG would remain unchanged and the quota on the five subsidized cylinders from September 2012 to March 2013 would be given to the consumers. Further, from 1 April 2013 onwards people would be entitled for nine cylinders per annum.
Subsidized rates of LPG for 14.2 kg cylinder in the market is 410.50 rupees and further requirement of any household beyond the cap of 6 cylinders costs 895.50 rupees per cylinder. As per the reports from Oil Ministry, it suffered a total subsidy loss of about 37411 crore rupees on cooking gas in 2012-2013 at 520.50 rupees per cylinder.
The Election Commission of India has also granted no-objection to this act of Government of raising the cap on LPG gas quota. This decision was taken in a meeting of the commission, under the chairmanship of VS Sampath the Chief Election Commissioner of India. The Union Government on 15 January 2013 wrote an application to the election commission to know its stand on the issue of raising the cap on the subsidized cylinders. The center wanted to take the permission from the commission as the model code of conduct was operational in Nagaland, Meghalaya and Tripura, where the elections are scheduled to be conducted in February 2013.