With its focus on lowering subsidies, Centre has slashed subsidies on LPG cylinders from Rs 11,896 crore in FY21 to Rs 242 crore in FY22. Centre government lowers LPG . According to data provided by the petroleum ministry in the Lok Sabha, in FY18, FY19, and FY20, the Centre’s expenses in terms of LPG subsidy stood at Rs 23,464 crore, Rs 37,209 crore, Rs 24,172 crore.
“The prices of petroleum products in the country are linked to the price of respective products in the international market. However, the Centre government continues to modulate the effective price to consumer for domestic LPG,” said Rameswar Teli, union minister of state for petroleum and natural gas said in a written reply to Lok Sabha.
It noted that the subsidy, as admissible, is credited to the bank account of eligible beneficiaries under direct benefit transfer. Most households now purchase non-subsidised cooking gas after the government restricted subsidy to only the beneficiaries of the Ujjwala scheme in 2020, which account for around 9 million customers.
The move came in as government planned to phase out subsidy on LPG cylinders and aimed at providing only direct benefit transfers (DBT). In the ongoing financial year, Teli told the parliament that the government has started a targeted subsidy of Rs 200 per 14.2 Kg cylinder for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for upto 12 refills a year for year 2022-23.
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While announcing the subsidy of Rs 200 per cylinder for FY23, Finance Minister Nirmala Sitharman had said in May that the revenue implication for the move would be around Rs 6,100 crore a year. The announcement of the subsidy came in the wake of surging inflation in the country. The retail inflation in the country has been above the upper tolerance limit of 6% for six months in a row now. In June, India’s retail inflation stood at 7.01%.
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