GOVERNMENT OF INDIA

MINISTRY OF PETROLEUM AND NATURAL GAS

LOK SABHA

UNSTARREDQUESTION NO: 4253

ANSWERED ON: 22.03.2013

SAVINGS FROM CAPPING OF LPG CYLINDERS 

(a) whether the Government has assessed the savings made from capping the number of subsidized Liquefied Petroleum Gas (LPG) cylinders for consumers in the country; 

(b) if so, the estimated savings made by the Government per annum by capping LPG cylinders in the country so far; and 

(c) the percentage of LPG import likely to be curtailed as a result thereof ?

ANSWER

(a) & (b) Public Sector Oil Marketing Companies (OMCs), namely, Indian Oil Corporation Limited (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have estimated (based on previous year consumption data) that only 10% of cylinders will be sold at market prices at current cap level of 9. This translates to saving fiscal subsidy and under recoveries on around 9.2 crore cylinders at the rate of Rs. 461.58/ domestic subsidized cylinder w.e.f. 01.03.2013. 

(c) OMCs have reported that the percentage of LPG import likely to be curtailed in 12-13 vis-à- vis. 11-12 is 14.3%.