With its allies and the Opposition calling for a rollback in the hike of diesel prices and the cap on LPG cylinder supply, the government is likely to announce a partial rollback of the cap on subsidised cooking gas, reported CNN-IBN.
Sources told the channel that the government is considering raising the limit on the number of subsidised LPG cylinders from six to ten cylinders per household per year. Reports also said that Finance Minister P Chidambaram and Petroleum Minister Jaipal Reddy were opposed to the cut in subsidy.
Trinamool Congress chief Mamata Banerjee on Sunday said that she will pull out her ministers from the UPA government — only as an extreme step — if the Centre does not reverse the decisions on diesel and cooking gas price hikes and allowing foreign direct investment (FDI) in the retail sector.
She has given the government time till Tuesday to back on its decisions.
Last week, the government had raised the price of diesel by Rs 5 per litre and has put a cap on subsidised LPG of six cylinders per household per year.
The decision under immense criticism with both the Opposition and the UPA allies demanding a rollback. The BJP-led NDA has announced a nation-wide strike over the price hike and LPG cap on 20 September. Left parties have also announced a 12-hour all-India general strike on the same day.
With inputs from Agencies