Government considering raising caps for subsidized LPG
There are indications that the central government is considering reviewing the limit placed on subsidized Liquefied Petroleum Gas (LPG) cylinders per households.
Oil Minister M Veerappa Moily said that the decision to limit the total number of subsidized LPG to 6 per year per household might be reviewed following demands from various sections. The central government had announced in September that people will only be allowed to purchase six LPG cylinders at subsidized rates from gas agencies in a year.
"Representations have been received to revise the annual cap, which are being looked into," he said.
He said that the cylinders beyond six in year are being sold at the rate of Rs 895.50 per 14.2-kg bottle in Delhi. Following the decision, the oil companies are reefing records to check customers with multiple connections. Customers have been asked to submit the Know-Your-Customer (KYC) form to LPG distributors.
Consumers are allowed to purchase six cylinders per year at subsidized rates and beyond the, the cylinders are now available at market price. Government owned oil firms revise the prices of LPG on the first of each month depending upon the international prices and rupee-US dollar rate during the previous month. The government has not put any restriction on the number of non-subsidized LPG cylinders that a consumer can buy.