Centre for limiting subsidised LPG to 4 cylinders a year!

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Sujay Mehdudia / The Hindu / NEW DELHI, August 10, 2011.

If you pay income tax or own a scooter, car or a house, you will soon be limited to four subsidised gas cylinders a year, if a proposal informally approved by an empowered Group of Ministers on Monday night is finally implemented.

Seeking to address a ballooning subsidy bill, the Manmohan Singh government has decided to bite the bullet and put into action this proposal to limit the supply of subsidised LPG cylinders.

The Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee, has also decided to initiate a dialogue with the States for the direct transfer of the kerosene subsidy to beneficiaries in the form of cash with the intention of doing away with the current practice of supplying subsidised fuel under the public distribution system (PDS).

Senior officials told The Hindu that a formal decision on these two matters would be taken by the EGoM at its next sitting.

On a related note, the Parliamentary Standing Committee on Petroleum and Natural Gas last week suggested ending the sale of subsidised cooking gas to households with income of over Rs. 6 lakh per annum. A 14.2-kg LPG cylinder costs Rs. 395.35 in Delhi. This is Rs. 247 short of its market price. If the recommendations are accepted, households above that income threshold will have to pay Rs. 642.35 a cylinder. The panel also suggested that those holding constitutional posts, public representatives like MPs, MLAs and MLCs should also not get subsidised cooking fuel.

Under the EGoM proposal, the affected households will get only four LPG cylinders at a subsidised price. Officials said the calculations were based on a survey done by the oil marketing companies (OMCs), which states that each 14.2-kg bottle of LPG normally lasts a household 45-60 days and based on this calculation a maximum of six cylinders are considered enough to see a family through the year.

However, LPG distributor records indicate that a vast number of households are taking as many as 20 to 30 cylinders each year, a symptom of large-scale diversion of subsidised cooking gas for use in commercial establishments such as restaurants and dhabas and as auto fuel. LPG for commercial use is sold at the market price and packed in different cylinders.

Full Story at,

http://www.thehindu.com/news/national/article2340717.ece?homepage=true

No subsidised gas for people with annual income exceeding Rs. 6 lakh: Panel!

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PTI, The Hindu / NEW DELHI, August 3, 2011.

The government is considering a proposal to limit supply of subsidised domestic LPG cylinders to four per household in a year. File photo - The Hindu.

The government should end subsidised domestic cooking gas (LPG) for people with income of more than Rs. 6 lakh per annum, a Parliamentary panel has suggested.

A 14.2-kg LPG cylinder in Delhi currently costs Rs. 395.35, which is Rs. 247 short of its market price. If the panel recommendation is accepted, people with more than Rs. 6 lakh per annum household income will have to pay Rs. 642.35 per bottle.

“...to offset the huge losses made on account of subsidised domestic LPG cylinders, the government may consider to do away with providing subsidised LPG to rich and affluent people having an income of more than Rs. 6 lakh per annum”, it said.

“This should include those holding constitutional posts, public representatives like MPs, MLAs/MLCs,” the Standing Committee on Petroleum and Natural Gas said in its latest report.

The suggestion was made in view of the huge subsidy bill the government has to foot while selling fuel at below market price.

Yes, at last our law makers have seen some reason in my contention that subsidies should be confined to people of lower income groups and not everyone in the Soceity!

Full Story at,

http://www.thehindu.com/business/Economy/article2319116.ece

LPG Hike: Mamata withdraws cess on LPG for WB consumers!

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Press Trust Of India / Updated Jun 25, 2011 at 03:58pm IST / http://ibnlive.in.com.

Kolkata: To provide relief to the common people reeling under hiked fuel price, West Bengal Chief Minister Mamata Banerjee on Saturday announced her government's decision to withdraw cess on LPG and thus save Rs 16 per cylinder for the consumers with immediate effect.

"I consulted my Finance minister Amit MItra after midnight decision of the UPA government to hike prices of diesel, LPG and Kerosene oil and decided to withdraw cess collected by the state government on each LPG cylinder to give relief to common people", the chief minister told reporters.

She said that the state government would not collect cess of Rs 16 per LPG cylinder and this would effectively put the burden of hike at Rs 34 and not Rs 50 on consumers in the state.

Very Good Gesture, Mamatadi, hope all other states too follow suit!

Full Story at,

http://ibnlive.in.com/news/mamata-withdraws-cess-on-lpg-for-wb-consumers/162629-3.html?from=blaze