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Friday, February 26, 2016

2015-16 Economic Survey Calls For Reducing Subsidised Cylinders To 10 in a year from the present 12 a year

Advocating rationalising LPG subsidy, the pre-Budget Economic Survey has called for cutting supply of below-market priced cooking gas to 10 cylinders per household in a year from 12 cylinders, at present.

At present, all households are entitled to get 12 cylinders of LPG or liquefied petroleum gas, each with 14.2kg, at a subsidised rate of Rs. 419.26, against the current market price of Rs. 575.

Any requirement above the entitlement of 12 cylinders has to be bought at the market price.

"Rationalisation of LPG subsidy is essential. It may be useful to cap subsidy to 10 LPG cylinders for each household (that being the maximum used for usual domestic cooking)," the survey tabled in Parliament said.

The previous Congress-led UPA government had restricted the number of subsidised domestic cylinders per household to six every year in September 2012, revising it to nine the following January.

The cap was revised in January 2014 to 12 cylinders a year, starting April 1 that year

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