LPG cap to be raised from 6 to 10 cylinders: Sources

The Centre is considering a partial rollback of the cap on subsidised LPG. It is considering raising the limit on the number of subsidised LPG cylinders from six to ten cylinders per household per year, say sources.

A section of the Congress and its allies - the Trinamool Congress, NCP and DMK have been demanding a rollback of the cap on LPG cylinders.

Sources say Finance Minister P Chidambaram and Petroleum Minister Jaipal Reddy were opposed to the cut in subsidy. Sources also say that the government is not keen on raising the prices of kerosene and petrol for now.

Trinamool Congress chief Mamata Banerjee has been holding the UPA government ransom, threatening to take a strong step if the government does not roll back the diesel price hike, the cap on subsidised LPG and FDI in retail.

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 September 20. Left parties have also announced a 12-hour all-India general strike on the same day.

Mamata Banerjee-led TMC had held a rally in Kolkata on Saturday, during which, Mamata strongly came out against the decision. The Samajwadi Party had also criticised the government.

Samajwadi Party would stage protest demonstrations across Uttar Pradesh on September 20 to protest against the "wrong" policies of the Centre, including the recent diesel price hike and allowing FDI in retail sector.

"State president Akhilesh Yadav has directed all the city and district unit presidents to consult the leaders and workers and chalk out strategy for the programme," party spokesman Rajendra Chaudhary had said.

(With additional information from PTI)