The Union government on 17 January 2013 hiked the cap on subsidised LPG cylinders from 6 to 9. The move will be effective from April 2013. The Government had also allowed oil companies to hike diesel prices by a small quantum periodically.
With the implication of raised cap the Consumers will be getting a quota of five subsidised cylinders between September 2012 and March 2013 and from 1 April 2013, they will be entitled to get nine cylinders per annum.
It was also decided in the meeting on Cabinet Committee on Political Affairs (CCPA) that there will be no change in LPG and kerosene rates. With this, the Election Commission has granted no objection to government's proposal for raising cap on LPG gas quota.
Subsidised LPG costs 410.50 rupees per 14.2-kg cylinder and any household requirement beyond current cap of 6 cylinders is to be bought at a price of 895.50 rupees per cylinder.
The finance ministry is keen to reduce the subsidy burden. Oil companies have estimated that if they had sold fuel at international rates they would have gained additional revenue of 1.63 lakh crore rupees in the current fiscal year.
The oil ministry has projected a subsidy loss of 37411 crore rupees on cooking gas in 2012-13 at 520.50 rupees per cylinder.
The Government is committed to ensure smooth supply of cooking gas to consumers. To ensure this, the government is planning to launch a system of rating gas dealers on the basis of time taken to deliver cylinders, which will allow customers to switch dealers.