The government on Thursday raised the cap on supply of subsidised LPG cylinders to nine bottles from six per year and allowed oil companies to hike diesel prices by a “small quantum” periodically.
There will be no change in LPG and kerosene rates, Oil Minister M Veerappa Moily told reporters on Thursday after the meeting on Cabinet Committee on Political Affairs (CCPA).
“I am happy to inform the Cabinet Committee on Political Affairs has decided to raise the cap on subsidised LPG to nine cylinders per household in a year from existing six cylinders,” he said.
Consumers will get a quota of five subsidised cylinders between September 2012 and March 2013 and from 1st April, 2013, they will be entitled to nine cylinders per annum.
Moily said that the oil companies have been permitted to raise diesel prices by a small quantum periodically till such time that they are able to cover Rs 9.60 per litre loss they incur on the fuel.
Finance Minister P Chidambaram further maintained that the oil companies have been allowed to make “small correction from time to time.”Oil company IOC has raised Diesel price by 45 paise per litre from midnight today while petrol price has been reduced by 25 paise per litre.