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Dec 11, 2012, 08.11 PM IST | Source: PTI

LPG-LD MOILY TWO LAST

LPG-LD MOILY TWO LAST

Sources said raising the cap on supply of subsidised LPG Sources said raising the cap on supply of subsidised LPG to nine cylinders per household in a year will mean that the Finance Ministry will have to provide an additional Rs 3,000 crore subsidy this fiscal. On an annualised basis, the burden comes to Rs 9,000 crore. Even with six-cylinder-per-household cap, oil PSUs face a unprecedented revenue loss of over Rs 163,000 crore on sale of diesel, subsidised LPG and kerosene. Of this, the finance ministry has to provide Rs 105,525 crore and it does not seem to have funds to meet even this share. Increasing the cap would add another Rs 3,000 crore to this figure. The remaining revenue loss on fuel sale is borne by oil firms. Retailers currently lose Rs 10.03 per litre on diesel, Rs 30.93 a litre on kerosene and Rs 520.50 per 14.2-kg subsidised LPG cylinder. In 2011-12, government gave out Rs 83,500 crore by way of cash subsidy. Moily said he has discussed with Chidambaram the issue of finance ministry providing a cash support of only Rs 30,000 crore as against a demand of over Rs 55,000 crore to cover losses incurred on selling fuel below cost in the first half of current fiscal. "I am confident they (finance ministry) will meet all the requirement," Moily added. PTI ANZ NS

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