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LATEST NEWS UPDATES | Six-cylinder annual LPG cap under review: Veerappa Moily

Six-cylinder annual LPG cap under review: Veerappa Moily

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published Published on Nov 24, 2012   modified Modified on Nov 24, 2012
-The Times of India

The government is looking into demands for raising the six-cylinder annual cap on supply of subsidized cooking gas refills to each family, oil minister M Veerappa Moily told the Lok Sabha in a written reply on Friday.

Separately, minister of state for petroleum Panabaaka Lakshmi told the House that state-run fuel retailers have issued more than 10 lakh new cooking gas connections since the government capped the supply of subsidized cylinders per family.

ToI had on November 3 first reported that a higher cap of nine subsidized cylinders — if not complete abolition with a marginal hike in price — after the poll code in effect for Gujarat elections was on the oil ministry's discussion table, though a formal proposal was yet to be put on paper.

The government had decided to cap supply of subsidized cylinders on September 13 to check the subsidy burden. As per the new norm, any requirement beyond this number would have to be bought at market rate, which at present is pegged at Rs 895.50 per refill against the subsidized price of Rs 410.50 in Delhi.

Moily said for the purpose of issuing subsidized cylinders, a family is considered to be consisting of husband, wife, unmarried children and dependent parents living together in a dwelling unit having common kitchen.

The state-run fuel retailers are weeding out consumers with multiple connections. The retailers have put up on their websites a list of customers suspected to have multiple connections, Moily said adding only such customers have been asked to submit the KYC (know your customer) verification form to the LPG distributors to prove their bona fide.

So far, over a million connections have been blocked and of these 241,000 have been surrendered, he said. "Oil marketing companies have blocked 55,41,887 LPG connections during ongoing KYC drive in an effort to stop diversion of subsidized domestic LPG," Moily said.

Multiple LPG connections in different names at the same address and same-name-same-address have been allowed by converting them into market priced supplies, he added.

"The oil marketing companies are currently incurring under-recovery (loss) of Rs 478.50 per 14.2-kg subsidized domestic LPG cylinder," Moily said. They incurred a revenue loss of Rs 138,541 crore on sale of diesel, kerosene and domestic LPG at government controlled rates in 2011-12.


The Times of India, 24 November, 2012, http://timesofindia.indiatimes.com/india/Six-cylinder-annual-LPG-cap-under-review-Veerappa-Moily/articleshow/17343235.cms


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