Subsidised LPG finds its way to commercial users

May 27 2014, 23:32 IST
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As household cap rises to 12 a year, sales of commercial gas fall 10%. AP As household cap rises to 12 a year, sales of commercial gas fall 10%. AP
SummaryAs household cap rises to 12 a year, sales of commercial gas fall 10%

ministry official told FE, adding that a cap of 12 cylinders leaves just 1% of domestic consumers out of the subsidy net.

“Modiji has dedicated this victory to the poor and has already stated that the government will work for betterment of the poor. This will be my ministry’s guiding principle as well,” said 45-year-old Dharmendra Pradhan, who took charge as the minister of state (independent charge) at the oil ministry on Tuesday.

Last week, petroleum secretary Saurabh Chandra listed the increase in LPG cap as one of the policy mistakes by the previous government, in his presentation to cabinet secretary Ajit Seth. Meanwhile at North Block, the finance and expenditure secretaries are likely to discuss the issue as they brief new finance minister Arun Jaitley, officials said.

“When the increase happened, we had raised our objections as increasing the cap from nine to 12 would mean more than 90% of all LPG refills would have to be subsidised. That is not a statistic you want when you are talking about fiscal consolidation and cutting down on subsidies,” a finance ministry official told FE.

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