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LPG may get expensive in Delhi

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Press Trust of India New Delhi

Prices of LPG cylinders might go up in the capital with the cash-strapped Delhi Government mulling to do away with or slash the subsidy offered on them.     

"The issue (whether to continue or reduce subsidy on LPG cylinders) will be discussed in the Cabinet meeting tomorrow," Chief Secretary Rakesh Mehta said but refused to divulge details.     

However, officials said the government might completely withdraw current subsidy of Rs 40 per cylinder or cut down the subsidy by Rs 25 and give subsidy of Rs 15 per cylinder.     

In case the subsidy is withdrawn, the consumers will have to shell out Rs 320 per cylinder against prevailing rate of Rs 280 and in case the government opts to cut down the subsidy by Rs 25, a cylinder will cost Rs 305, an official said.     

 

In June last year, the state government had announced a subsidy of Rs 40 per cylinder in an attempt to cushion the consumers soon after the Centre hiked LPG prices by Rs 50 per cylinder.     

The subsidy is costing the state exchequer around Rs 168 crore and declining revenues from property and entertainment besides other taxes this year seems to have prompted the government to offload the LPG burden.     

Incidentally, the state government's plans has come close on the heels of the party's humiliating defeat in recent bypolls in Dwarka and Okhla.

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First Published: Sep 21 2009 | 4:01 PM IST

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