New Delhi, Sept 16: UPA's major constituents—Trinamool Congress and DMK—today forced the government to hold back any moves to cut back on supply of subsidised LPG even as they joined opposition parties in criticising the hike in petrol price and demanded its roll back.
A meeting of the Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee on limiting the supply of subsidised LPG was deferred at the last minute after objections from Trinamool Congress and DMK.
Official sources said the meeting was called off “due to non-availability” of certain members of the panel and no new dates have been notified.
The EGoM was to consider limiting the supply of subsidised LPG cylinders to 4-6 per household in a year to cut down the government's subsidy outgo by over Rs 12,000 crore.
This could have led to the price of non-subsidised gas cylinders pegged at over Rs 700 per cylinder. DMK leader and Fertiliser Minister M K Azhagiri decided not to attend the meeting to show his party's opposition to the proposal, DMK sources said.
Railway Minister and Trinamool Congress leader Dinesh Trivedi dismissed reports that he was not willing to attend the meeting saying actually it would have given him an opportunity to put forward his party's opposition to it. On yesterday's decision to increase the price of petrol by Rs three, Trivedi said the party wants it to be rolled back.
Stating that the hike would put an additional burden on the common man, Trivedi strongly opposed the possible hike in LPG prices.
“It is not a luxury but an essential for common man and should not be raised further,” he told reporters.
Trinamool Congress chief and West Bengal Chief Minister Mamata Banerjee conveyed her opposition to the hike when she met Union Minister Ambika Soni in Kolkata.
“This morning when I met the Chief Minister, she expressed the concern of her party and herself over the increase in prices of petrol. She asked me to convey her party's views on the issue to the Prime Minister and I said I will do it,” Soni told reporters in Kolkata.
The Union Minister, however, added that the Congress party was equally concerned over the issue of prices and that Finance Minister Pranab Mukherjee was himself extremely sensitive to the issue.
DMK, the second largest ally of the Congress in Centre, also demanded the roll back of petrol prices.
“The hike in petrol prices will affect the lower and middle income groups and the poor. Government should not reduce the subsidy. The increase would have a cascading effect,” DMK party spokesman T K S Elangovan said in Chennai. He also opposed any moves to introduce dual pricing of gas.
The Empowered Group of Ministers (EGoM), which was scheduled to meet at 1.30 p.m. on Friday, was called off at the last moment.
Official sources said the meeting was called off due to “non-availability” of certain members of the panel and no new dates have been notified.
The meet was to consider limiting the supply of subsidised LPG cylinders to 4-6 per household in a year to cut down the government's subsidy outgo by over Rs. 12,000 crore.
However, the move was opposed by key UPA allies, the Dravida Munnetra Kazhagam and the Trinamool Congress. DMK leader and Union Fertiliser Minister M.K. Azhagiri had decided not to attend the meeting to show his party's opposition to the proposal, sources in the party said.
The Trinamool, too, was opposed to the move, but its representative in the EGoM and Railway Minister, Dinesh Trivedi, was to attend the meeting to voice his party's strong opposition to the proposal.
Other members of the EGoM include Union Agriculture Minister Sharad Pawar, Power Minister Sushilkumar Shinde, Road Transport Minister C.P. Joshi, Oil Minister S. Jaipal Reddy and Planning Commission Deputy Chairman Montek Singh Ahluwalia.
Both the Petroleum and Finance Ministries were keen on the proposal, as it would have plugged the diversion of subsidised LPG for commercial use and cut down the government's subsidy outgo.
The EGoM was to consider giving every household only 4-6 LPG cylinders at a subsidised price of Rs. 395.35 (Delhi price) and asking them to pay the market price of Rs. 666 per cylinder for any requirement beyond that.
Limiting the supply of subsidised LPG cylinders is likely to save the government over Rs. 12,000 crore in subsidy outgo annually.
The limited supply of subsidised LPG would be for those who own a car, two-wheeler, house or figure in the income tax list, according to the proposal.
State-owned fuel retailers Indian Oil, Bharat Petroleum and Hindustan Petroleum lose about Rs. 63 crore per day on selling domestic LPG below cost.
