This comes as a big relief to domestic cooking gas cylinders. The Government would increase the cap on subsidised domestic cooking gas cylinder to nine from six at present for every consumer.
"We are raising it. It will be nine. We are trying to do this (raise the cap)," said Petroleum Minister M Veerappa Moily.
In order to cut down on sky rocketing subsidy bill, the Government in September decided to cap the number of domestic LPG cylinders at six per consumer every year. This created an uproar across the nation because it was felt that six cylinders are not sufficient to meet the demand in a complete year.
The Petroleum Ministry would seek Cabinet's nod for hiking the cap. "We need to take it to the Cabinet," Moily told mediapersons at the CII National Council Meeting in the national capital.
When asked when the decision would be taken, the Petroleum Minister replied, "As early as possible. Shortly."
Moily said that he has held two rounds of discussion with his Finance counterpart, P Chidambaran on this issue.
However, Moily did not specify on how would take the subsidy burden - Government or the Public Sector Marketing companies.
"That we are working out," Moily added.
Currently, the three public sector oil marketing companies, IOC, HPCL and BPCL, sells a 14.2 KG domestic cooking cylinder at a subsidised rate of around Rs 410 for every refill in New Delhi. And the non-subsidised refills are prices at more than Rs 900 for every refill.
According to rough estimates, at current levels of prevailing global LPG prices, increasing cap from six to nine cylinders may increase the subsidy bill by additional Rs 3,000 crore in 2012-13. And it would be close to Rs 9,000 crore in a complete year.
Moily reiterated that increasing the cap on subsidised cylinders on the eve of State elections would not have a political impact.
"Even if we do it now, it will not impact States' elections," Moily said.