Header Ads

Subsidised LPC cylinders 6 per household per year -- for essay writing

The government today restricted the supply ofsubsidised cooking gas to 6 cylinders per household in a year to fetch an additional Rs 20,300 crore.

The CCPA decided that each household will get 6 cylinders of 14.2-kg per annum at the subsidised rate of Rs 399 and any requirement beyond that would have to be procured at the market rate of Rs 746 per bottle.

State-owned oil firms were losing about Rs 6 per litre on petrol, a commodity which was deregulated in June 2010 but rates of which have rarely moved in tandem with cost.

Even after the hike and restrictions on LPG, the government will be left with an under-recovery of Rs 167,000 crore this fiscal which is more than Rs 138,541 crore of 2011-12.

The CCPA took the following decisions to be implemented with effect from the midnight of 13/14 September 2012 :

1) Restrict the supply of subsidized LPG cylinders to each consumer to6cylinders (of 14.2 Kg) per annum. This will help in reducing the under-recovery by about Rs. 5,300 crore for the remaining part of the financial year. The under-recovery on sale of Domestic LPG during 2012-13, even after this measure, is estimated to be above Rs. 32,000 crore. Any number of cylinders will be available over and above the cap of 6 cylinders at market rate. The number of subsidized LPG cylinders available to each consumer in the remaining part of the current financial year will be 3 cylinders. While subsidized cylinders will continue to be available at Rs. 399 per cylinder (at Delhi), the market rate of LPG cylinders at non subsidized rates will be notified by the OMCs on monthly basis.

2) No increase in the price of PDS Kerosenewhich is currentlyRs. 14.83 per litre (at Delhi). The under-recovery of the OMCs on sale of Kerosene during 2012-13 will continue to be about Rs.32,000 crore.

It may be recalled that the Department Related Parliamentary Standing Committee on Petroleum & Natural Gas (which has members from all Political Parties) made recommendation on capping of subsidized LPG cylinders to 6 per annum.

The effect of capping supply ofsubsidized LPG cylinders at six per annum will lead to saving of subsidy on one third of the total LPG cylinders.Two third of the total cylinders will still be supplied at subsidized rate. About 44% of the total Domestic LPG consumers, who consume 6 cylinders or less per annum, will not be affected by this decision. Capping of cylinders will also lead to reduction in misuse/diversion of subsidized cylinders.

No comments

Powered by Blogger.