The Cabinet Committee on Political Affairs (CCPA) eased the burden on households on India by raising the limit on supply of LPG cylinders to nine bottles from six per year for each household. Further, the authorized the oil marketing companies (OMCs) are sanctioned for periodic hike in diesel prices till the Rs. 9.60 per litre subsidy is completely eliminated.

However, no decision was taken by CCPA regarding proposal of Petroleum Ministry to hike LPG cylinder and Kerosene price; consideration was given to the mass consumption of these commodities.

While, the periodic hike in diesel prices have been approved, Petroleum and Natural Gas Minister, Veerappa Moily refused to share the details or formula for a phased price hike in diesel prices to eliminate the subsidy element.

According to the official statement published by The Hindu, Veerappa Moily, said, “I am happy to inform the CCPA has decided to raise the cap on subsidized LPG to nine cylinders per household per year from existing six cylinders. Consumers will get a quota of five subsidized cylinders between September 2012 and March 2013 and from April 1, 2013, they will be entitled to nine cylinders per annum.”

In the month of September the government had put a cap on supply of subsidized cooking gas to six cylinders per household with the objective of checking unlawful and illegal practices. The increase of limit from 6 bottles to 9 bottles with definitely ease household expenditures but would mean an additional subsidy outgo of Rs. 9,300 crore annually.

source: The Hindu