Home » Business » Petroleum ministry to cap LPG cylinder sale
Consumers will have to buy cylinders above the specified quota at the market price.
The petroleum ministry has made the proposal to the task force on direct transfer of subsidies headed by Nandan Nilekani, chairman of the Unique Identification Authority of India, to trim the huge subsidy on sale of domestic LPG.
A ministry official said the three oil marketing companies -- Indian Oil, Bharat Petroleum and Hindustan Petroleum -- have already, as a pilot project, sent letters to consumers in Hyderabad and Mysore, seeking bank account details.
"We look to have a pilot till December in these two cities. Direct cash transfer of a token subsidy will be done in the pilot phase and the response will be studied," he said.
The detailed report on the functioning of the pilot shall be given to the panel by December.
The LPG pilot is being funded by the Oil Industry Development Board. Besides, the UIDAI would give Rs 50 on every enrolment.
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