Consumers to get 9 LPG cylinders if govt plays along: Oilcos
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Even with 6-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 of the revenue loss on fuel sale is borne by oil firms.
Retailers currently lose Rs 10.19 per litre on diesel, Rs 32.87 a litre on kerosene and Rs 478.50 per 14.2-kg subsidised LPG cylinder.
In 2011-12, government gave out Rs 83,500 crore by way of cash subsidy.
The official said Moily also took up 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.
After the imposition of the cap, the demand for subsidised LPG grew by only 2 per cent in September and October this year as compared to a growth of 6.
7 per cent in the same period last year.
Non-subsidised LPG sales this year jumped by 17.4 per cent as compared to 1.4 per cent last year.
The official said LPG supplies are being streamlined and bottlenecks removed.
The filling of Know-Your Customer (KYC) forms has been mandatory only on 2.6 crore suspected customers who have multiple connections at the same address.
Only one subsidised connection per household comprising husband, wife, dependant chilren and parents is allowed.