Government may reduce subsidised LPG cylinders to rich


Oct 8, 2009
Big move if this actually goes through. Combined with even a partial diesel price hike this could make a dent in the subsidies section of the budget. Not by a lot through unless the fertilisers and Kerosene prices are also not tackled.

Government may reduce subsidised LPG cylinders to rich - Yahoo! India Finance
Bangalore, July 18 (IANS) The central government is mulling reducing the subsidy on cooking gas by limiting supply of LPG cylinders to those who do not belong to the economically weaker section category, Minister of State for Petroleum and Natural Gas R.P.N Singh said here Wednesday.

The government plans to save Rs.10,000 crore following the move, he said.

"We are in the advanced stage of a decision to reduce the subsidy burden on cooking gas by capping the number of liquefied petroleum gas (LPG) cylinders supplied to other than the economically weaker section customers," Singh told reporters on the margins of a conference here.

The state-run oil marketing firms collectively bear a whopping subsidy burden of Rs.36,000 crore on the cooking gas cylinders as the government had not decontrolled its price.

"If we supply gas cylinders to the economically poor who deserve subsidy and restrict it to the rich, the government will be able to save about Rs.10,000 crore annually," Singh said at the 17th Refining Technology Meet, organised by the state-run Hindustan Petroleum Corporation Ltd (HPCL) and the Centre for High Technology.

Singh, however, ruled out decontrol of diesel price as it was a sensitive issue and any rise in its price would have a cascading impact on the economy.

"We are looking at a partial decontrol of diesel which would have minimal impact on the prices of other commodities but help us in reducing the fiscal deficit," Singh hinted.


Regular Member
Apr 25, 2012
first check misuse by these 'poor' rich

Indian VVIPs go on LPG cylinder binge - CNBC-TV18
The government says IOC , HPCL and BPCL will lose Rs 43,000 crore selling subsidised LPG cylinders and so the government is now looking to cap LPG cylinders per family at 6. But our parliamentarians and MPs are misusing these LPG subsidies reports CNBC-TV18's Nayantara Rai.

Petroleum minister Jaipal Reddy may regret launching the brand new transparent LPG portal. The idea behind the portal is to remove pilferage and educate consumers on just how much subsidy they avail. But data of just one gas distributor in Delhi is enough to embarrass our ministers, MP's and corporate India's who's who. The data reveals the ugly truth of the real beneficiaries of government subsidies. As per data on the transparency portal former Uttar Pradesh chief minister Mayawati has a whopping 91 cylinders to her name costing the government Rs 31,318 in the past one year.

Former DGP Punjab, KPS Gill availed of 79 cylinders in FY12, costing the government Rs 27,189 in subsides.

Minister of State for external affairs, Preneet Kaur used 77 cylinders and ran up a tab of Rs 26,501.

Incidentally even jailed former telecom minister A Raja got 89 cylinders while he was in Tihar.

While former chief justice of India KG Balakrishnan took home 60 cylinders.

Cabinet ministers seemed to have used less gas! Heavy industry minister Praful Patel used 41 cylinders while his party chief, Sharad Pawar availed of 31 cylinders.

Law minister Salman Khurshid used 34.

BJP chief Nitin Gadkari has 35 cylinders to his name while fellow party man Venkiah Naidu has 33 cylinders.

Corporate India is not far behind. Ranbaxy founder, the late Bhai Mohan Singh has 52 cylinder registered against his name last year while Bennet Coleman promoter Samir Jain got 39 cylinders.

While Bharti group chairman Sunil Mittal and his son Kavin both got 27 cylinders.

An embarrassed oil ministry was quick to issue a clarification which says "Press reports, suggesting misuse of subsidy, based on number of LPG cylinders supplied as per consumption data from LPG transparency portal are factually incorrect. As per the current rules and regulations there is no limit on the number of cylinders consumed by any individual."

As per rules, in Delhi you are eligible to apply for a refill only every 21 days. So, in year that works to about 18 cylinders. So, while the oil ministry says no rules have been flouted, this is a sorry reflection of subsidy management.

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