The Government seems to be changing the cap of six LPG Cylinders a year to Ten Cylinders.
Right now we get the LPG after 21 days-that is Booking is taken after 21 Days,Delivery may take another 5 – 10 days.
That means we get 17 Cylinders a Year now.
Under the present thinking we will get 10, that is41% less.
We may have to switch to Induction Stoves,again Telescoping Electricity tariff?
Yet this decision could have bee communicated better instead of bluntly saying ‘Six Cylinders a Year’
The Government’s original decision would have been Ten year;six is testing the water.
Could have tested nicely!
Story;
“New Delhi, Sept 17: There seems to be some relief for aam aadmi. Government is contemplating to raise the limit on the number of subsidised LPG cylinders from six to ten cylinders per household per year, say sources.
Government’s decision is purely based on the fierce opposition it has received from all quarters after it had announced hike in diesel prices and put a cap on LPG cylinder recently.
The diesel price has been increased by Rs 5 a litre and each household will get only six domestic LPG (14.2 Kg) cylinders per annum at a subsidised rate.
Along with opposition parties, a section of the Congress and its allies – the Trinamool Congress, NCP and DMK have been demanding a rollback of the cap on LPG cylinders.
Sources say that the government is expected to reach out to its ally Trinamool Congress and discuss a compromise over the cap in subsidised LPG cylinders. Sources add that Prime Minister Manmohan Singh is likely to call Mamata Banerjee on Monday, Sept 17 and arrive at a compromise over cap on subsidised LPG cylinders.
The latest decision of government on fuel price hike has come under immense criticism. The BJP-led NDA has announced a nation-wide strike over the price hike and LPG cap on Sept 20. Left parties have also announced a 12-hour all-India general strike on the same day.”
However much the apologists for Corporates could argue the fact is that the subsidies doled out to the Corporates has not met with the desired social benefits in terms of controlling the prices.
The Economists quote growth rate of the Industry and the saving of Foreign Exchange.
Even if we agree to this, has it reduced the burden of the individuals?
No.
I have collected, as a sample, the Dividend declared by IOC and the subsidies granted by the Government.
Simple logic says that no one would declare Dividend from a losing Company.
How is it that IOC is declaring profits and at the same time crying foul that it would be hurt badly if the Oil Prics are not increased?
As a major Share holder the Government is earning the profit out of IOC.
How can we say Oil Companies/Government is incurring loss on account of Oil Subsidy granted and to recoup it the Government is increasing th Oil Price?
Notwithstanding the mumbo-jumbo of Economics, the fact remains people suffer.
On the other hand a group is emerging,especially IT which fuels inflation.
The word ‘subsidy’ gets the hackles of free market economists up. The government’s economic managers and advisors have consistently been in favour of eliminating – or at least reducing — subsidies.
The present environment supports their argument. The economic slowdown has meant slower revenue growth and a larger than expected ‘fiscal deficit’ – the gap between the government’s income and expenditure – with pressure mounting to reign in the deficit. Numerous voices – from corporate chambers, financial media personalities, and even fund managers – have been calling on the government to reduce deficit by cutting down subsidies. With food inflation abating, the government strategy appears to be to utilise the period until March to build public acceptance of the elimination of subsidies and then make its moves after the state elections are out of the way.
The subsidies that the government wishes to cut or eliminate fund diverse programmes, with the common theme being that they make available some item of mass consumption – foodgrains, fuel or fertilisers – at prices controlled by the government rather than left to market forces.
The most elaborate subsidy is the food security programme with a Public Distribution System (PDS) that procures grain from farmers, maintains a buffer stock in storage, and makes the grain available around the year to 65 million households across the country through nearly half-a-million retail outlets. The oil programme has several components — providing kerosene (used mainly for lighting by poor families) through PDS outlets; distributing Liquefied Petroleum Gas (LPG) for cooking to 115 million customers; and finally making diesel – 75% of which is used for mass transport, both rail and road, for agricultural machinery and for emergency power generation – available at government set prices. The last programme pays fertiliser manufacturers and importers to sell fertilisers to farmers at government set prices.
Government support for these programmes has the effect of lowering the expenditure of poor households. This assumes importance in the absence of a state-supported guarantee of minimum income levels. Social security – a fallback in case of unemployment, old age and incapacitation or illness – is non-existent for most Indians. A recent report (Divided We Stand: Why Inequality Keeps Rising) from the Organisation of Economic Co-operation and Development (OECD) finds India’s public social spending measured as a fraction of its GDP not only far lower than the developed countries, but also lower than China, Russia, Brazil, and South Africa, the ‘emerging economies’ with which it is often compared.
Yet the government’s economic advisors choose to question the provision of subsidies.
Now one can get gas Cylinders at the subsidised rate,as is now, to a maximum of Rs. 410 in Bangalore and subsequent to this guidelines ,it will cost as per the notification issued by the Oil Cmpanies ona Monthly basis.
For the remaining part of th Financial Year, only three more Gas Cylinders will be issued.
The tough decisions, which came under immediate attack from allies like Trinamool Congress and Samajwadi Party and opposition alike, were taken at a meeting of the Cabinet Committee on Political Affairs (CCPA) chaired by Prime Minister Manmohan Singh. It will come into effect from midnight.
The government, which has been facing criticism of policy paralysis, had last hiked the price of diesel by Rs 3 a litre in June last year.
The revised retail selling price of diesel in Delhi will be Rs 47 a litre, while branded diesel will be sold at the market rate.
For the remaining part of the current financial year, the number of subsidised LPG cylinder to a consumer will be three cylinders.
A government release said that any number of LPG cylinders will be available at the market rate over the capped number of six. While the price of subsidised cylinder will continue to be Rs 399 per cylinder in Delhi, the market rate will be notified by oil firms on monthly basis.
The Oil Ministry has proposed to release Gas Cylinders at Rs. 800/cylinder (with out subsidy) if you happen to own a car or a two Wheeler or a house.
Even for those BPL(Below Poverty Line),only four cylinders per year will be issued at Rs.400 four cylinders per year and subsequent cylinder will cost Rs.800.
If the oil ministry has its way, cooking gas consumers would soon get only four refills in a year at subsidized rate. Every subsequent cylinder would cost Rs 800 or so at today’s market price, says a media report.
The only way is to have the car/two-wheeler in some one’ else’s name and to shift to electric appliances or old-fashioned firewood.
I read some where yesterday that ‘India helped reduce world poverty’! -UN Report.
India is rich ,Indians are poor.
The ministry proposes to limit the number of subsidized cylinders for even BPL (below poverty line) at four cylinders a year. But the government would give them a one-time assistance of Rs 1,400 for getting a connection.
A formal proposal, being drawn up by the ministry for the ministerial panel on fuels, explains that the plan would ensure that government subsidy reaches only those who deserve it and stop the huge black market in subsidized kerosene supplied for the poor.
The proposal outlines the criteria to identify those who have to pay market price for refills. These include anyone who owns a car, two-wheeler, house or figures in the income-tax list. The subsidy to BPL cardholders would be delivered through the unique identification number, Aadhar, as it is commonly known, regime that is in the works.
In India, prices of essential commodities are skyrocketing and people are apathetic and political parties, especially the Opposition makes routine noises for they too do the same when they come to Power.
Take the instance of price hike of Kerosene,Diesel,Petrol and LPG(Cooking Gas).
The prices are no longer easily affordable for even an upper middle-income group.
The Government forgets that price rise of essential items such as the above will increase prices of all commodities further.
In the case LPG,people shall gravitate towards electric cooking appliances like Oven,Induction Stove, which will increase demand for electricity of which India is notoriously short.
Tax element in the prices of these products by the Central Government is very high.
What is the point in taxing more and use the money thus collected elsewhere?
When Essentials are not met, what is the point in talking about products for which the Government allocates money as project finance?
Customers must bring the demand down to ensure reasonable pricing as has been done in the case under discussion.
Why not use Social Media to pressurize the Government?
Israel’s relatively small size and its tech-savvy and media-aware population enabled the protest to spread quickly. More than 105,000 people joined the Facebook group vowing to boycott cottage cheese until prices dropped. The campaign touched a nerve among Israelis concerned about rising prices and eroding salaries.
Spooked by the outrage, the three main Israeli dairy companies that control the market agreed to lower the price of a half-pound (250 gram) container to 5.90 shekels ($1.75) after it had risen to close to 8 shekels ($2.30).
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