It’s for oil cos to take call on LPG cap, says Moily

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There have been demands from within the Congress as well as from Opposition to raise the limit, says Moily.
There have been demands from within the Congress as well as from Opposition to raise the limit, says Moily.

Admitting that the decision to limit supply of subsidised cooking gas (LPG) cylinders to six a year has caused hardships, the Petroleum Minister, M Veerappa Moily today said it is for the public sector oil firms to take a call on raising the cap.

Moily, who earlier this week took over as the Oil Minister, said there have been demands from within the Congress as well as from Opposition to raise the limit.

Also, states like Jammu and Kashmir and those in the North East have cited logistics problems in implementing the decision to limit the number of subsidised cylinders to six per household in a year, he said.

“They have gone by some arithmetic that on an average only six cylinders are enough (for a household). This is arithmetic, (but) there is also a chemistry, which they have not done,” Moily told NDTV here.

Stating that the government has deregulated many things, he said the decision to raise the cap rests with the oil companies.

“This (raising cap) is a matter the oil PSUs will have to consider... we have given a lot of liberty to oil companies, we (the oil ministry) do not want to take decision,” he said.

“Of course,” was his reply when asked if there were demands to raise the cap.

“Our AICC spokesperson has said there should be an increase in the cap and many political parties have also said that.”

“Some of the states like Jammu and Kashmir say logistics is a real problem for them. Putting a cap has put a lot of hardship. Many of North Eastern State Chief Ministers have also raised (the issue),” he said.

(This article was published on November 2, 2012)
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In less than 24 hours the decision taken by the OMC is reversed and
the action raise the LPG prices put on hold. This is what makes the
Government appear weak and inconsistency in walking the talk is
breeding lack of confidence in this Government whose popularity is at
is lowest. It would have been wiser not to announce any increase and
in less 24 hours if it had to be reversed only means some personal
intervention of Politics over Economics and one may take it as Sonia
Gandhi's instruction to PM. The crude prices have been falling and
there was no reason for any increase yet if it is announced then it
must be followed rather then going step back.
Mr. Jaipal Reddy and Mr. Moily are just figure head in this ministry
and it is controlled by a Remote control. To that extent Mr. Arvind
Kegriwal is right in his allegation.

from:  Nitin N Varia
Posted on: Nov 2, 2012 at 14:29 IST

It is unfortunate that political parties are more interested in electoral gains from petroleum products’ pricing. Citizens want implementation of a rational and long term policy with regard to prices of diesel, petrol kerosene and LPG. Crude price is unlikely to fall in international markets. In the light of this fact Citizens are unable to understand why our major political parties are not ready to agree to put in place right policy about fixation of prices of petroleum products. Such a policy would have also to consider the case for specific duties and taxes instead of taxes calculated as percentage of some value. Irrational demand for 24 subsidized LPG cylinders made by Ms Mamata Banerjee some time back is a poor indicator of our politicians’ home work about prices of petroleum products. Of course, BJP and other parties are no d9ifferent in this respect

from:  Narendra M Apte
Posted on: Nov 2, 2012 at 16:37 IST
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