Extra cylinders to up subsidy burden by Rs 1,400cr per yr
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Gas agencies in the twin cities said they haven’t got written instructions from the oil marketing companies about providing three additional subsidised LPG cylinders to the consumers in the next six months. The OMCs also need to announce the price of the non-subsidised cylinders every month, since the price is subject to revision.
Dealers are confused about how to differentiate between subsidised and non-subsidised cylinders if they weigh and look the same, and how to track whether the consumers are misusing the provisions.
Reports indicate Congress chief Sonia Gandhi has asked the Chief Ministers of Congress-ruled states to subsidise three more cylinders on their own. The AP government is yet to make an announcement regarding subsidising the three extra cylinders as Haryana, Himachal Pradesh, and Assam have already done. “There is no clarity on the distribution of LPG domestic cylinders in the state so far. We are not in a position to answer consumers’ dou-bts. We request the Centre, state government and all regulatory agencies to clarify the issue at the earliest to ensure smooth delivery of cylinders,” said P. Venkate-shwara Rao, president, AP LPG Dealers’ Association.
The state government is worried about the additional financial burden of subsidising three extra cylinders. AP is already struggling under the Rs 25 subsidy it gives on domestic cylinders, and owes over Rs 150 crore in arrears to OMCs on this account. Should the government subsidise the three extra cylinders, the subsidy burden will cross Rs 1,400 crore per annum.
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