New Delhi: The miseries of people hit by inflation are yet far from over. An Empowered Group of Ministers (EGoM), headed by the Finance Minister Pranab Mukherjee would meet on August 8 to take some vital decisions related to subsidy on LPG cylinders and kerosene.

The Standing Committee of the Parliament has already recommended the cancellation of subsidized LPG cylinders to the families having an annual income over Rs 6 lakhs per annum.

However the proposed EGoM meeting may finalise the supplied LPG cylinders’ numbers apart from settling the issue of direct kerosene subsidy to the consumers, according to the sources of Petroleum Ministry.

The sources maintained that the EGoM may finalise the number of LPG cylinders to be given to customer on subsidy per year and settle the issue of direct kerosene subsidy to consumers.

Sources maintained that Petroleum Minister Jaipal Reddy would put forward two options for reducing diesel subsidies. The first option suggests imposing one time tax on the purchase of diesel cars, whereas the second suggestion is about transferring diesel subsidy directly in the bank accounts of farmers and transporters. The government is keen on implementing a similar proposal for kerosene subsidy.

The two major decisions to be taken in the EGoM include indentifying the income group which would get limited subsidy on LPG cylinders and deciding the number of LPG cylinders to be given on subsidy to consumers each year. Possibilities are that the EGoM may approve six or eight subsidized cylinders per annum to each consumer. 

If the proposal comes into effect, Rs 650 would be charged for per extra cylinder. Meanwhile, on an experimental basis, the Petroleum Ministry has decided to launch the trial run of this proposal in Hyderabad and Mysore.