The Cabinet Committee on Political Affairs (CCPA) on Thursday raised the cap on supply of subsidised LPG cylinders to nine bottles from six per year per household and authorised the oil marketing companies (OMCs) to undertake periodical hike in diesel prices till the Rs. 9.60 paise per litre subsidy is completely wiped out. The increase in the LPG cap would mean an additional subsidy outgo of Rs. 9,300 crore annually.
The CCPA, that met under the leadership of Prime Minister Manmohan Singh, virtually announced the “deregulation’’ of diesel prices thereby authorising the OMCs to hike diesel prices over a period of time to cover up the Rs. 9.60 paise per litre loss being incurred by them. However, Petroleum and Natural Gas Minister, Veerappa Moily refused to share the details or formula for a phased price hike in diesel prices.