Addressing an industry meet on petroleum, Singh said subsidized cooking gas was meant only for the poor and the needy and the rich "should take the initiative voluntarily to give up subsidized LPG".
A cooking gas cylinder costs Rs 399 in Delhi and Rs 398 in Mumbai because of government subsidy. At current market rates, a refill would cost Rs 287 more. Depending on the international price of the fuel, the market rate of a cylinder could even shoot up to double the present price.
"There may be many others like me who would want to pay market price since subsidy is not for them. I am going to write to companies, industry associations and other stakeholders on how to go about the issue," said Singh.
Singh, who is in charge of ensuring fuel supplies throughout the country and struggling with mounting subsidy bill, appears to have been forced to look for volunteers after the ministry shelved a proposal to limit the number of subsidized cylinders to four in a year. For every subsequent refill, the proposal envisaged, consumers would have had to pay market price.
Singh said the idea is to replicate what happened some years ago, when people who could afford it stopped buying foodgrains from PDS shops despite having ration cards. His idea is to first have ministers, MPs, bureaucrats and the senior management of public sector companies to give up subsidized cooking gas voluntarily. Taking the cue, other sections like corporate executives and businessmen would also follow suit.
One way of doing it could be that affluent continue buying subsidized cooking gas and pay the difference between the market price to the oil companies directly through cheques. The other way would be that these classes start buying the blue-coloured 19-kg cylinders that are being sold at market price.
Singh said the fuel subsidy bill for this fiscal is projected at Rs 132,000 crore and such bold moves are needed to cut this down.
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