LPG Subsidy: Oil companies review the prices of LPG cylinders every month. Tax varies from state to state and LPG prices vary accordingly.
Big news has come about the subsidy available on LPG cylinders. The Ministry of Petroleum and Natural Gas is evaluating the extent to which the subsidy on liquefied petroleum gas will be restored. A survey is being done that at what price more and more consumers will buy gas cylinders.
Considering several options
Business Standard quoted a senior official of the Ministry of Petroleum and Natural Gas as saying that various options are being considered in the matter. One of these options is that the government can provide subsidy under the Ujjwala scheme only to economically weaker consumers.
Rs 3,559 crore distributed to consumers as subsidy
It is noteworthy that in the financial year 2020-21, the government had given Rs 3,559 crore to the consumers as subsidy. Whereas in the previous financial year 2019-2020, this figure was Rs 24,468 crore. In this way, in a year, the government has cut the subsidy by almost six times. At present, if the annual income of the consumers is Rs 10 lakh, then you do not get the benefit of subsidy on cylinders.
At present, there is so much subsidy
At present, the subsidy on domestic cylinders is zero in Delhi, but the central government provides subsidy to customers in the form of freight costs in some states. The quantum of subsidy varies, but is roughly less than Rs 30. According to the reports, the survey being done regarding subsidy will find out at what rate consumers can buy cylinders.
Cylinder became costlier by Rs 190.50 this year
Talking about the price of the cylinder, it was Rs 694 in Delhi on January 1 this year. But now it has increased to Rs 884.50. That is, so far this year it has gained Rs 190.50. It costs Rs 911 in Kolkata, Rs 884.5 in Mumbai and Rs 900.5 in Chennai. The price of gas cylinder changes every month. Its price is determined by factors such as the average international benchmark and changes in foreign exchange rates.
