Govt wants LPG subsidy to be given only to vulnerable section of population | Check Here

The Centre wants the subsidy on liquefied petroleum gas (LPG) to be given only to the vulnerable section of the population, government sources told CNBC TV 18 on October 18.

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The current LGP subsidy regime is being reviewed, the sources claimed, adding that “all economic decisions need to be sustainable”

Notably, the subsidy on petroleum products plunged 92 percent in April-July 2021 from a year ago, as the government withheld the transfer of subsidies on LPG cylinders to millions of beneficiaries despite a sharp increase in the prices of the cooking fuel.

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Petroleum subsidy for the first four months of 2021-22 was estimated at Rs 1,233 crore provisionally, down from Rs 16,461 crore in the corresponding period of 2020-21 when poor households were given three free refills.

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On high fuel prices, the sources pointed out that the cumulative fuel consumption in India has surged by “15-16 percent” as compared to the period before the onset of the COVID-19 pandemic.

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