The poll-bound Congress-led UPA Government's potential decision to hike the limit of subsidised LPG cylinders from 9 to 12 per household per year may hit India's ratings.

Global rating agencies have been closely watching the country's fiscal deficit, and any decision to hike the annual cap of subsidised LPG cylinders could displease them because any such move inflate the country's fiscal deficit.

In case the government hikes the cap, it will put an additional burden of Rs 3,300 to Rs 5,800 crore on the already struggling exchequer.

Currently, under the 9 subsidised LPG cylinders regime, nearly 89 per cent of the country's 15 crore LPG consumers are covered. In case the quota is hiked to 12, it would cover nearly 97 per cent of the consumers.

Those who have already consumed their subsidised LPG cylinders quota have to purchase additional cylinders at the market price. While subsidised LPG costs Rs 414 per 14.2-kg cylinder in the national capital, the market price is Rs 1,258 per cylinder.

The Cabinet Committee on Political Affairs will take up the proposal to hike the annual limit of subsidised LPG cylinders within a week.