New Delhi: Cap on subsidised LPG cylinders is likely to go up to 9 in a year from 6 at present, Oil Minister Veerppa Moily said on Tuesday. Speaking on the sideline of an event organized in New Delhi, Moily said that a final decision in this regard will soon be taken by the Union cabinet.

The minister also added that the decision is not going to violate model code of conducts in the poll-bound states because the rise in cap on subsidized LPG cylinders will not be implemented in these states.

"I think it is likely to go up definitely from six (cylinders) to 9 (cylinders)," he said.

The government had in September capped supply of subsidised LPG to six cylinders per household in a year. Any additional requirement is to be bought at market price of Rs 931 per 14.2-kg bottle. Subsidised LPG costs Rs 410.50 per cylinder at present.

The original decision to cap supply at 6 cylinders was taken by the Cabinet Committee on Political Affairs on September 13 and the decision to raise it would also have to be taken by the Cabinet panel, he said.

"I think as early as possible," he added.

Moily said he has had two rounds of discussions with Finance Minister P Chidambaram on the impact of the decision to raise the cap.

The government will have to provide an additional Rs 9,000 crore annually if the cap is raised.

"We are working on that," he said on ways to mitigate the additional subsidy requirement. "We are working on certain formula to neutralise it."


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