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Cap on LPG cylinders to be eased in Cong ruled states

by Sep 19, 2012

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The cap on LPG cylinders has been increased in Congress ruled states from six cylinders to nine.

Congress President Sonia Gandhi spoke to the Chief Ministers of Congress led states, and it is widely expected that the state government will have to bear the cost of the additional three cylinders.

The cap will be eased in Congress ruled states: Reuters

How this will help reduce the fiscal deficit in any way is a little mysterious given it is finally a subsidy in a different form.

This means that the subsidy will be increased in states like Delhi, Maharashtra, Rajasthan, Andhra Pradesh and Assam.

Sonia Gandhi has spoken with the Chief Ministers of various Congress ruled states…they have been asked to increase the number of subsidised LPG cylinders from six to nine,” Congress spokesperson Janardhan Dwivedi said.

However, the Congress has reportedly ruled out any possibility of reducing the hike in diesel prices.

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