If government approves the suggestions made by the panel, then people with more than Rs 6 lakh per annum household income will have to pay Rs 642.35 for a 14.2-kg LPG cylinder, which is currently sold at Rs 395.35 with the subsidy.
The panel said that recommendation was made to help the government to expand its subsidised LPG distribution to the rural people who are more in the need of this clean fuel. The panel added that proposed measures will help the government to overcome the huge subsidy bill which it has to foot while selling fuel at below market price.
Moreover, the panel also made a proposal to the government to limit supply of subsidised domestic LPG cylinders to four per household in an year. Sources said that another proposal was to stop selling subsidised LPG cylinder to the rich.
Meanwhile, if government wants to implement these suggestions, it should 'identify' the people who earn more than Rs 6,00,000 per annum as 'rich' and those who have an annual income below Rs 6 lakh as 'poor'. This is going to be another 'Tughlaq-esque' that may sparks controversies in the society. Some of the reports claimed that the proposed suggestions will make instability in the society and may bring conflict between the so-called 'rich' and 'poor'.
Importantly, another confusion is that how a local gas agency can categorize its consumers to poor and rich. Also, how a consumer will inform its agency that he will fall under poor or rich category? As of now, the only way seems to be by giving a copy of consumers' IT-return to the gas agency. But, will it be okay for consumers to disclose their annual income to a gas agency? It seems like consumers and government as well are going to face 'gastric' problems over the new LPG subsidy plan.