The government has extended the supply of subsidised cooking gas to educational and social welfare institutions.

"Petroleum Minister Ram Naik has, on the occasion of Republic Day 2003, approved the proposal to provide subsidised LPG for all school and college hostels, government/municipal hospitals, social welfare institutions like child/women welfare homes, old age homes, homes for disabled and for implementing the Mid-day Meal Scheme," a government release said.

At present, the subsidised LPG is sold only to domestic households.

Following dismantling of the administered pricing mechanism for the oil sector from April 2002, the LPG
was being supplied to the above-mentioned categories at a commercial rate of Rs 650 per 19-kg cylinder.

As opposed to this, the domestic LPG is subsidised at Rs 250 per 14.2-kg cylinder. The commercial rates of LPG at Rs 34.2 per kg are nearly double the subsidised rate of Rs 17.6 per kg.

"In view of the hardships faced by the residents of hostels in educational institutions, patients in hospitals and inmates of social welfare institutions, Naik decided to restore the availability of subsidised LPG to these," it said.

Out of about 7.5 million tonnes of total consumption of subsidised LPG, the estimated supply to special categories
like charitable institutions, educational institutions and hospitals accounts for less than 1.5 per cent.