The prices of LPG cylinders are about to touch Rs 1000. According to an internal assessment of the government, consumers are ready to pay Rs 1000 for a cylinder. But as per a report Central government is trying to sell cylinders in two ways.
- One way would be that the government could continue selling LPG cylinders without any subsidies.
- Second way is government could offer subsidies on cooking gas cylinder purchases to select customers.
Who would be Eligible for LPG Subsidies?
The government has not taken any decision relate to LPG subsidies.
But the report suggests that the government could offer subsidies to customers with less than Rs 10 lakh annual income.
And the beneficiaries of the Ujjwala scheme could receive subsidies on LPG purchases.
The Ujjwala scheme aims to provide free LPG connections to women from Below Poverty Line (BPL) households.
This flagship scheme was launch on 1st May 2016.
The Central government had stop offering direct subsidies to customers on LPG gas cylinders from May 2020, at a time when fuel rates fall suddenly due to the COVID-19 pandemic.
At that time, the international prices of oil and gas had dip severely.
The government continues to offer subsidies indirectly.
The government’s expenditure on subsidies stood at Rs 3,559 during the financial year 2021.
This expenditure stood at Rs 24,468 crore in the financial year 2020.
The Central government has recently reduce the excise duty on petrol and diesel by Rs 5 and Rs 10.
That’s another reason why many are hoping that the government could re-start offering the subsidies on LPG cylinders.
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