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Government likely to stop subsidy on Domestic LPG cylinder due to Inflation hit

Aastha Bhatia

In the rising inflation, the common man may get another setback. According to media reports, customers may have to pay Rs 1,000 per LPG cylinder in the coming days. The government can stop the subsidy on LPG cylinders. However, no such news has come to the notice of the government on increasing the price of LPG cylinders. But an internal assessment of the government has revealed that consumers are ready to pay up to Rs 1,000 for a cylinder.

Government's two stands regarding LPG cylinder

According to media reports, the government can take two stances regarding the subsidy of LPG cylinders. The first is that the government should either run as it is now. Second, under the Ujjwala scheme, subsidies should be given only to economically weaker consumers. However, nothing has been said clearly about giving subsidies.

Subsidy burden on the government reduced by 6 times in 1 year

During the financial year 2020-2021, the government gave Rs 3,559 crore as a subsidy to the consumers. In the financial year 2019-2020, this expenditure was Rs 24,468 crore. That is, in one year itself, the government has cut the subsidy by about 6 times.

Source: Google/ Image Credit: NDTV.com

What are the rules regarding subsidy now?

According to the current rules, if your annual income is more than Rs 10 lakh, then you will not get the benefit of subsidy on an LPG cylinder. Apart from this, the subsidy on LPG was stopped in some places in May 2020.

Gas cylinder has become costlier by Rs 190.50 so far this year

The price of the LPG cylinder in Delhi on January 1 this year was Rs 694. Now the price of a cylinder is Rs 884.50. That is, since January, the price of domestic gas cylinders has increased by Rs 190.50.

The price of gas cylinders more than doubled in 7 and a half years

The price of a domestic gas cylinder (14.2 kg) has more than doubled in the last 7 and a half years. The price of a 14.2 kg domestic gas cylinder as of 1st March 2014 was Rs 410.5, which is now Rs 884.50.

29 crore people in the country have an LPG connection

About 29 crore people in India have an LPG connection. This includes about 8 crore LPG connections under the Ujjwala scheme.

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