The Cabinet Committee on Political Affairs today hiked the subsidised LPG cylinder cap from nine to 12 cylinders. All India Congress Committee vice president Rahul Gandhi pitched strongly for the hike while addressing the AICC meet earlier this month. Customers will benefit from this hike over and above the 9 cylinders effective February 1, 2014. This hike is likely to cause a further fuel subsidy burden of Rs 5000 crore on under-recoveries, said Oil minister Veerappa Moily. The government is currently incurring a loss of Rs 80000 crore per annum as LPG subsidy and this hike will increase this amount to Rs 85000 crore. Moily further added that the Cabinet has put on hold Aadhaar-linked transfer of LPG subsidy to bank accounts. The government had earlier capped the amount of subsidised cylinders to six per household but later gave into public demand after the clamour for more cylinders grew. The quota was raised to nine in January 2013. Read more at: moneycontrol/news/economy/cabinet-approves-subsidised-lpg-cap-hike-to-129_1034417.html?topnews=1&utm_source=ref_article
Posted on: Thu, 30 Jan 2014 10:09:25 +0000
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