Now,Thomas opposes cap on LPG subsidy

K V Thomas is learnt to have written to Manmohan Singh suggesting a “slab system”

Written by Express News Service | New Delhi | Published: September 18, 2012 4:10 am

Amid the protests over the government’s decision to cap the supply of subsidised LPG cylinders to six per household per year,Food Minister K V Thomas is learnt to have written to Prime Minister Manmohan Singh suggesting a “slab system” with a marginal increase in prices for extra cylinders.

While the government had decided that extra cylinders would be sold at the full market price (Rs 746),Thomas has suggested that the government should increase the price by only Rs 50 for each of the next six cylinders. The price can then be hiked by Rs 150 for the next 12 cylinders,he has said,adding that any cylinders above this 24-per-year limit should be sold at full market rates.

Pointing out that the current proposal does not appear to have gone down well with the middle class,Thomas has said that his system “would (instead) give an impression that the government is considering the hardship of the common man”.

Thomas has,however,supported the government’s decisions to allow FDI in retail and increase the diesel price as “essential for bettering the economy”.

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