New Delhi:
After yesterday's over Rs 3 per litre hike in petrol prices, middle-income households may also have to shell out more for domestic cooking gas.
A panel of senior ministers will meet today to discuss measures to reduce the fuel subsidy burden on the government. Towards this, they may decide to limit the number of subsidised LPG cylinders that tax-paying households or those that own a house or a car, can use. If such a decision is taken, these households will have to pay market rates for extra cylinders. The number of subsidised LPGs could reportedly be limited to four to six a year.
Right now, a consumer in Delhi can buy a domestic LPG cylinder at the subsidised price of Rs. 395.35. At market rates, an LPG cylinder will cost more than Rs 650.
The middle class Indian is already reeling under the burden of a near double-digit inflation and Friday could have another shock in store. The Reserve Bank is meeting for the mid-quarterly credit policy review and might hike repo rates in a an effort to tame spiraling prices. If this happens, EMIs on existing loans will increase and new loans will become more expensive.
The political ramifications of such tough measures have UPA allies grumbling.
Sources say the DMK will not attend the meeting of the empowered group of ministers to be chaired by Finance Minister Pranab Mukherjee today. The party is reportedly upset with the dual pricing mechanism proposed for LPG cylinders. The party is also said to be unhappy as it was not consulted on the petrol price hike. Union Minister MK Alagiri is a member of the EGoM, but will not attend, sources said.
The Trinamool Congress, the second-largest constituent of the UPA after the Congress, has also expressed dissatisfaction at not being consulted on the petrol pice hike.
A panel of senior ministers will meet today to discuss measures to reduce the fuel subsidy burden on the government. Towards this, they may decide to limit the number of subsidised LPG cylinders that tax-paying households or those that own a house or a car, can use. If such a decision is taken, these households will have to pay market rates for extra cylinders. The number of subsidised LPGs could reportedly be limited to four to six a year.
Right now, a consumer in Delhi can buy a domestic LPG cylinder at the subsidised price of Rs. 395.35. At market rates, an LPG cylinder will cost more than Rs 650.
The middle class Indian is already reeling under the burden of a near double-digit inflation and Friday could have another shock in store. The Reserve Bank is meeting for the mid-quarterly credit policy review and might hike repo rates in a an effort to tame spiraling prices. If this happens, EMIs on existing loans will increase and new loans will become more expensive.
The political ramifications of such tough measures have UPA allies grumbling.
Sources say the DMK will not attend the meeting of the empowered group of ministers to be chaired by Finance Minister Pranab Mukherjee today. The party is reportedly upset with the dual pricing mechanism proposed for LPG cylinders. The party is also said to be unhappy as it was not consulted on the petrol price hike. Union Minister MK Alagiri is a member of the EGoM, but will not attend, sources said.
The Trinamool Congress, the second-largest constituent of the UPA after the Congress, has also expressed dissatisfaction at not being consulted on the petrol pice hike.
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