CM in dilemma over LPG price hike relief

he state government is in a dilemma over subsidising further the price of LPG cylinders, the price of which was recently hiked by Rs 35.

Though the Chief Minister, Mr K. Rosaiah, is keen on providing some relief to consumers, the quantum of relief is not decided. The government already subsidises each cylinder by Rs 25.

In discussions with the CM, officials laid out the figures. The state had been paying Rs 16 crore every month towards the previous subsidy of Rs 25 on each cylinder. Mr Rosaiah decided to discuss the issue threadbare in the cabinet meet scheduled for July 1.

The government had earlier considered waiving Value Added Tax on the increased price of diesel.

Sources said the officials told the Chief Minister that the net benefit to the customer would be 40 paise on each litre but the revenue loss to the state could be Rs 350 crore per year.

“While individual customers will not feel any benefit and acknowledge the government gesture, the state will lose heavily,” a senior minister pointed out.

The Chief Minister also heard the recommendations of members of the Group of Ministers on fee reimbursement to tighten the scheme. The suggestions included requiring 75 per cent attendance and passing every year in order to qualify, and withdrawal of the facility for students whose family income crosses Rs 1 lakh and who possess a car.