Minister warns PM Manmohan Singh of middle-class fury on capping LPG cylinders

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Agencies: New Delhi, Sep 17 2012, 21:11 IST
Food Minister K V Thomas today told Prime Minister Manmohan Singh that Centre's move to cap the number of subsidised LPG cylinders at six per household a year "will not go well" with middle class and suggested a slab system with a marginal hike in price for extra cylinders.

Thomas, who also holds the portfolio of Consumer Affairs Ministry, in a letter to the Prime Minister has suggested that the government should charge only Rs 50 extra for consumers seeking between seven and 12 LPG cylinders per household in a year and Rs 150 extra for 13 to 24 cylinders.

Any requirement beyond 24 cylinders per year, the Minister has recommended that the government should not give any subsidy and charge the market price.

"The decision to raise diesel price as well as to keep number of subsidised cooking as at six a year though essential for bettering economy, will not go well with middle class. In this connection, I would like to suggest a sort of slab system needs to be thought of," Thomas said.

"This would give an impression that the government is considering hardship of common man and also that the people are made to be mentally prepared for further increase in prices," he said.

In the letter, the Minister however praised the government's decision to allow FDI in multi-brand retail.

Last week, the government decided that each household will get six cylinders of 14.2-kg per annum at the subsidised rate of Rs 399 and any requirement beyond that would have to be

... contd.

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Reader's Comments (2)| Post a Comment

Middle Class Fury

M.S.Kamath | 18-Sep-2012Reply | Forward
All inluding middle class are furious because of uncontrolled inflation and corruption. Extending subsidy upto 24 LPG cylinders per family will not have any impact, since it is unusually large requirement. Usage beyond 6 itself will be rare. Minister seems to be not in touch with the reality. Diesel has become expensive because of taxes levied by state and central governments.

Government finding ways of increasing opportunities for corruption

Vijay | 18-Sep-2012Reply | Forward
A differential pricing will always force average people to have multiple connections and other alternative ways of offering something extra for getting an additional cylinder at a lower price. To avoid any foul play, the increase in prices should be uniform. By introducing quota system, Government is fanning corruption. However, Congress cannot think of anything else. A short and quick calculation can tell that a uniform price will go a long way to avoid corruption.

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