The Government is planning to bring down fuel subsidy by 10,000 crore rupees per annum by introducing a cap on the number of subsidised LPG cylinders supplied to those sections who are not economically backward. Union Minister of State for Petroleum and Natural Gas, R P N Singh informed this to media persons on the sidelines of a function in Bangalore today. Subsidy plays an important role in increasing the fiscal deficit thereby affecting the economy. Hence, the Minister added that there is an urgent need to reduce subsidies. Right now, the Government spends 36,000 crore rupees on LPG subsidy annually.

The Minister also noted that they are also looking at partial decontrol of diesel. But he stressed that raising the prices of diesel will have cascading effect on the economy. Hence, he said that they are trying to work out a balance between minimising its effects on the economy and also to bring down the fiscal deficit at the same time.