As expected earlier, the Congress-led UPA Government has raised the cap on subsidised LPG cylinders from 9 to 12 from April 2014. The decision was taken at the Union Cabinet following the recent directive by Congress Vice President Rahul Gandhi to PM Manmohan Singh to comply with his order. The Congress wants to revive its declining fortune ahead of 2014 polls with a series of populist measures and this move is seen as one of those.

The Cabinet Committee on Economic Affairs, has accepted Rahul Gandhi's recommendations. Petroleum Minister M Veerappa Moily had hinted about raising the cap in December 2013. But, it was planned in such a way that Rahul Gandhi gets full credit for the decision.

Increasing the limit to 12, could put an additional fuel subsidy burden of Rs 3,300 crore-4,000 crore on the government, which already incurs about Rs 46,000 crore per annum as LPG subsidy.

As per the latest decision, the consumers who have already taken 9 cylinders, can get only two more till March. However, consumers, who have taken 8 cylinders till date, can get three more subsidised cylinders. The government has also decided to delink Aadhar cards from LPG subsidy, which means the status quo will be maintained and the consumers won't will get cash subsidy to their bank accounts.