New Delhi: It is expected that households with an annual income of Rs 6 lakh and above will have to burn extra hole in their pockets for purchasing LPG cylinders. 

If the government accepts the recommendations of the Parliamentary Committee, attached with the Petroleum Ministry, to cancel subsidy on LPG cylinders to the affluent section, it might become a reality.

The Parliamentary Committee has also recommended that public representative like MPs and Legislators should remain out of the subsidy loop.

The report, which was tabled in the Parliament on Wednesday, said that the poor living in rural areas actually need subsidized LPG cylinders.

The Committee has asked government to implement the suggestions given by them and submit a detailed report on it.

The committee also raised concern on the amount of subsidy spent by the government in financial year 2009-10 for Kerosene under the Public Distribution System and LPG cylinders. The subsidy bill stood at Rs 2770 crores, despite which the oil companies had to bear a loss of Rs 14257 crore on account of subsidy to household cylinders.

However to minimize subsidy on the cylinders, government has decided to provide APL families four cylinders at subsidized rates every year. But the committee believes that to remove extra burden of subsidy on LPG cylinders, the government needs to take other steps as well.

Recommending the government to provide free LPG cylinders to BPL families, the Committee suggested that the provision should be implemented in the next Five Year Plan till the time all BPL families derive benefit out of it.

(JPN/Bureau)