Delhi govt defers decision on LPG subsidy; no increase for now

On a request from the Centre in view of the festival season,Delhi Government deferred a decision to withdraw the subsidy on LPG cylinders.

On a request from the Centre in view of the festival season,Delhi Government on Tuesday deferred a decision to withdraw the subsidy on LPG cylinders.

Though the matter was discussed in the Delhi Cabinet meeting,a decision has been deferred,an official said.

Emerging from the meeting,Chief Minister Sheila Dikshit said “LPG subsidy will remain the same.”

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Earlier in the day,Petroleum Minister Murli Deora said he has personally requested Dikshit not to increase the prices and the Chief Minister assured him that there will be no hike.

“I personally requested Dikshit not to increase the prices of LPG cylinders as it would cause hardships to housewives during the festive season. She readily agreed. Dikshit said there will be no price hike,” Deora said.

The cash-strapped city Government had plans to increase the price of the LPG cylinders with officials indicating that Government was set to withdraw the subsidy of Rs 40 per cylinder or cut down the subsidy by Rs 25.

The current price of an LPG cylinder is Rs 280 and the current subsidy of Rs 40 is costing the state exchequer Rs 168 crore annually.

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In June last year,the state government had announced a subsidy of Rs 40 per cylinder after the Centre hiked LPG prices by Rs 50 per cylinder.

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