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Wednesday, December 17, 2014

No plan to stop subsidised LPG to rich: Government

The government is not considering any proposal to stop supply of subsidised cooking gas (LPG) to the rich, Oil Minister Dharmendra Pradhan said today. 

Public sector oil marketing companies (OMCs) have given an option to existing LPGconsumers to surrender their subsidy and switch to buying cooking gas at market price, Pradhan said in a written reply in the Rajya Sabha

"Presently, there is no such proposal under consideration of the Government," he said, when asked if the government proposed to stop the supply of subsidised LPG to the well off people. 

"However, OMCs have given an option to existing LPG consumers to covert his/her existing domestic LPG connection into a non-subsidised domestic connection, if he/she so desires. This can be done by submitting a written request to the distributor or electronically via www.myLPG.in," he said. 

On Monday, Pradhan had told Lok Sabha that only 12,471 out of about 15 crore LPG consumers have so far voluntarily given up their subsidies. 

The ministry has urged ministers, MPs, MLAs, senior government officials and executives of public sector companies to give up their subsidies. 

Consumers are currently entitled to 12 14.2-kg cylinders or 34 5-kg bottles in a year at subsidised rates. Any requirement above that has to be procured at market price. 

A subsidised 14.2-kg cylinder is currently available at Rs 417 per bottle in Delhi. The subsidised cooking gas is also available in 5-kg packs, costing Rs 155 per such cylinder in Delhi. 

Any requirement beyond the subsidised quota is to be met through purchase of cooking gas at market price - Rs 752 per 14.2-kg cylinder and Rs 351 per 5-kg bottle.

Source:-The Economic Times

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