INDIA: LPG subsidy vs Diesel Deregulation

According to Times Now: In a mix of populist and reform measures, government on Thursday (January 17) raised the cap on supply ofsubsidised cooking gas (LPG) to nine cylinders per household from six and virtually deregulated diesel prices allowing "small" hikes over a period of time. Diesel prices in all probability may be hiked by Rs 1.50-2.0 per litre in the first instance that can be as early as tonight following the decision taken by the Cabinet Committee on Political Affairs (CCPA) headed by Prime Minister Manmohan Singh. The CCPA however left LPG and kerosene prices unchanged. "The CCPA considered the issue of raising the cap from six to nine and the CCPA has agreed and raised the cap from six cylinders (per household in a year) to nine," Oil Minister M Veerappa Moily told reporters here.

In a debate moderated by TIMES NOW's Editor-in-Chief Arnab Goswami, panelists -- Piyush Goyal, MP Rajya Sabha, BJP & Natl Treasurer; Naresh Gujral, MP Rajya Sabha, SAD; Dr. Bejon Misra, Consumer Expert; Kumar Ketkar, Chief Editor, Daily Divya Marathi, Bhaskar Group; Lord Meghnad Desai, Economist and Mohandas Pai, Educationist -- discuss whether Govt simply sugarcoating the diesel deregulation by raising the cap on subsidised LPGs cylinders to 9.