NEW DELHI: In view of the festival season, and paying heed to a request made by the Centre, Delhi on Tuesday decided not to withdraw or reduce the subsidy of Rs.40 on cooking gas cylinders introduced in June last year to help mitigate the impact of the sharp rise in the prices of essential commodities.

Emerging from a meeting of the Delhi Cabinet, in which the matter of subsidy was discussed, the Chief Minister said: “The LPG subsidy will remain the same.”

Earlier in the day, Union Petroleum Minister Murli Deora had spoken to Ms. Dikshit and urged her not to remove the subsidy. The Chief Minister, he said, assured him that the price of LPG cylinders would not go up in Delhi.

With the tax collections falling due to recession, the Delhi Government was left with no option but to consider withdrawal of the subsidy. By providing a subsidy of Rs.40 per cylinder, the Government was incurring an annual expenditure of Rs.168 crore on this head.