An Empowered Group of Ministers is expected to meet later today to consider capping the number of LPG cylinders that the domestic consumers can buy at the current subsidised prices.

The ministerial panel could also discuss issues related to subsidy on kerosene, official sources said.

The panel headed by the Finance Minister, Mr Pranab Mukherjee, on the financial health of the public sector oil marketing companies could restrict subsidised domestic LPG for all consumers to may be four or six cylinders. Beyond this limit the consumers can buy at market rates.

This is in line with the recommendations of the Task Force on Director Transfer of Subsidies on Kerosene, LPG, and Fertiliser. For kerosene, the Task Force has mooted a two-phase implementation of the direct transfer of subsidy.

At present, domestic LPG (14.2 kg) cylinder is being sold at Rs 395.35 in Delhi, almost Rs 247 lower than the market price. The desired retail price of domestic LPG is Rs 646 a cylinder (Delhi).

The Standing Committee on Petroleum and Natural Gas in its report on Demands for Grant (2011-12) has also suggested that the Government may consider doing away with providing subsidised LPG to persons having an annual income of more than Rs 6 lakh. This included those holding constitutional posts, public representatives like members of Parliament, MLAs/MLCs (member of legislative assembly/legislative council).

Oil companies sell diesel, domestic LPG and PDS kerosene at Government controlled price.

Effective August 1, the companies are selling diesel at Rs 6.82 a litre below the market price. The desired retail price of diesel in Delhi is Rs 48.11 a litre. Diesel in Delhi is currently sold at Rs 41.29 a litre.

PDS kerosene is being sold at Rs 24.93 a litre below the market price.

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