Panel Proposes to Stop Subsidised LPG to Consumers Above Annual Income of Rs.6 Lakh

4 Aug 11: A parliamentary panel on petroleum and natural gas, in its report for 2010-11 has opposed the proposal of oil ministry which says that the number of subsidized LPG gas cylinders being provided to all consumers should be restricted to four a year. The panel has instead proposed that, the provision of these subsidized cylinders to the affluent and influential people, including public servants and those in constitutional posts should be stopped. It has proposed that subsidized LPG should be denied to the people who have annual income above Rs. 6 lakhs.

However, there was no unanimity found in favor of this proposal in the parliament. But, the committee has viewed that by government forwarding this proposal, it will help the expansion of LPG distribution to the rural people who are in real need of this gas. For the period 2010-11, the total subsidy on LPG was Rs.14,257 crores.

Source: Financial Express