4 months after fixing LPG cylinder cap at 6, govt raises it to 9

Oil companies allowed to raise diesel prices by a small quantum periodically; from April 1, households entitled to nine cylinders per annum; no change in LPG, kerosene rates

GN Bureau | January 17, 2013


Consumers to get five subsidised cylinders between September 2012 and March 2013; nine cylinders from next fiscal.
File photo

With assembly elections in several states around the corner and the general elections due next year, the UPA government seems to have succumbed to populist measures. On Thursday, the government took a decision to increase the cap of subsidised LPG cylinder from six to nine.

The revision will come into effect from April 1.

"I am happy to inform that the cabinet committee on political affairs has decided to raise the cap on subsidised LPG to nine cylinders per household in a year from existing six cylinders," oil minister M Veerappa Moily told the media.

But there will be no change in LPG and kerosene rates, he added.

Consumers will get a quota of five subsidised cylinders between September 2012 and March 2013 and from April 1, 2013, they will be entitled to nine cylinders per annum, the PTI reports.

The CCPA had on September 13, 2012 decided to limit the number of subsidised cylinders per household at an annual six. On September 17, Sheila Dikshit’s Delhi government raised the cap from six to nine.

On Thursday, Moily said oil companies have been permitted to raise diesel prices by a small quantum periodically till such time that they are able to cover Rs 9.60 per litre loss they incur on the fuel.

Refusing to provide details of diesel price increase, Moily said the raise may take place as early as Thursday night.

The question, though, is why was the cap put on in the first place if it was to be lifted later? Upcoming elections in as many as 10 states between now and the general elections next year is being seen as the answer. Having burnt its hands in Gujarat, and nearly its fingers in Himachal Pradesh assembly elections, with the LPG subsidy issue seen as having had the potential to upset Virbhadra Singh’s applecart in the hill state, the Congress seems game to marry off Manmohanics with populism ahead of its chintan shivir in Jaipur.

Meanwhile, the cabinet committee on economic affairs (CCEA) approved using proceeds from the stake sale of public sector units to recapitalise public sector banks and insurance companies, besides subscribing to shares of public sector companies to retain a 51-percent stake.

The CCEA also allowed export of processed products — among them wheat or meslin flour, cereal flour, cereal groats, meal pellets, milk products, peanut butter and value-added products of onion. Since these products constitute a small portion of India’s overall exports, their continued export will not affect availability in the domestic market and encourage investment in the processed food sector and cold chain infrastructure in the country, says a report on livemint.com.

 

Comments

 

Other News

Take action, NSUI tells police over varsity clash

The National Students Union of India (NSUI) on Thursday sought action against those who had assaulted students and teachers of Delhi university at a protest march on Wednesday.` “Our sole motive is to compel the police to take some strict actions against the lawbreakers who brutally manhand

BMC polls throw up fractured mandate

 It’s a hung verdict in the elections to the BrihanMumbai Municipal Corporation, which is India’s richest civic body. Shiv Sena bagged 84 seats closely followed by BJP that won 81 seats. Congress with only 31 seats  performed badly as compared to  52 seats  that it

A poem that gives a perspective on Indian Muslims

A beautiful poem on modern Indian Muslims has caught the imagination of the social media users. “Hindustani Musalmaan” by Hussain Haidry has gone viral on the net. Not just for being crisp, but also for conveying what it means to be a Muslim in this country. There

Demonetisation posed a new challenge to growth: IMF

The Indian economy has recorded strong growth in recent years, helped by a large terms of trade gain, positive policy actions including implementation of key structural reforms, a return to normal monsoon rainfall, and reduced external vulnerabilities, said the International Monetary  Fund (IMF).

The Nirbhaya of Naliya: a gang-rape in Gujarat involving BJP leaders

  The “Forum of Concerned Citizens for Naliya Incident” sent a fact-finding team to Kutch on February 20. The members of the team were Dineshbhai Sanghvi, Meenakshi Joshi, Balendra Vaghela, Dr Jharna Pathak and advocate Shabana Mansuri. Based on their report, the Forum ha

A blotch of saffron on Indian universities

University of Hyderabad, Jawaharlal Nehru University and now University of Delhi…the free space for discourse is steadily being squeezed out of universities in India as the Rashtriya Swayamsevak Sangh (RSS) backed Akhil Bharatiya Vidyarthi Parishad (ABVP) imposes its will and forcibly blocks out alt

Video

यूपी चुनाव: सपा-बसपा समर्थकों के बीच हिंसा
Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter