Cooking Gas Subsidy

LPG rates this week were hiked by Rs 50 per 14.2-kg cylinder, taking the total increase in last one year to Rs 244 or 30 per cent.

The central government is planning to allocate Rs 44,000 crore as compensation to oil companies for losses they have been bearing by selling LPG at below-market rates, a report said

The govt will give Rs 200 per cylinder subsidy to Ujjwala Yojana beneficiaries for 12 cylinders in a year to help ease some of the burden arising from cooking gas rates rising to record levels

The hike comes on the back of a Rs 50 per cylinder increase effected on May 7

The RTI reply revealed that in 2018-19, three state-run OMCs paid Rs 37,585 crore as subsidy, which came down to only Rs 2,706 crore in FY22 till December, Kolarkar told PTI

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Lower subsidy allocation for disbursing new connections to poor indicates saturation of new PMUY beneficiaries

Centre assessing appropriate price at which subsidy should resume

While there was no need for subsidy in the low-oil-price phase of 2020, LPG prices have zoomed in 2021. But the Centre has not transferred subsidy at any point this year

The latest increase in subsidised LPG price now has taken the cumulative rate hike since January 1 to Rs 190 per cylinder

The government has completely eliminated the need to provide subsidy on domestic cooking gas as the global fall in oil prices has brought the price of the common man's fuel closer to market rates.

Move may open up subsidised LPG sector to private marketers

Earlier, beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) were entitled to three free liquefied petroleum gas (LPG) cylinders effective April 1 to June 30 this year.

This is a third straight monthly reduction in the price of LPG cylinders and comes on the back of falling international rates

After his successful experiment with cooking gas subsidy, the PM's second such exercise - the call for a 'janata curfew' - could be precursor to more ambitious follow-through steps, writes T N Ninan

Fertiliser and city gas segments set to fuel growth; power demand may revive soon

By distributing 73 million connections (as on July 14, 2019), the Ujjwala scheme has met 91.25% of its target of 80 million connections to poor households by 2020

New Delhi, 2 AprilWhile petrol and diesel prices have risen to historic highs, it is that of cooking gas that is likely to be a bigger cause of concern for the government and its three oil marketing companies (OMCs). Experts believe for 2018-19, with global prices moving to a higher range, the government subsidy for liquefied petroleum gas (LPG) is likely to be at least Rs 110 billion higher than the budgeted Rs 217 bn.Since product prices are benchmarked to their respective global indices, the OMCs have increased the price of a non-subsidised LPG cylinder by Rs 35.50 to Rs 653.50, as against Rs 689 on March 1. They, however, cut the price of a subsidised one by Rs 1.74 to Rs 491.35 in Delhi on April 1, indicating an increase in the subsidy. For the first nine months of 2017-18 (the year ended March 31), the subsidy outgo was Rs 141.7 bn, as compared to Rs 121.3 bn for all of 2016-17. The price of a subsidised gas cylinder rose Rs 50.45 over the past year -- it was Rs 440.9 on April ..

Apropos A K Bhattacharya's article, "Towards a new cooking gas regime", I agree that the criterion for granting subsidy to the rich should be determined on the basis of identifiable physical assets.The easiest way to do this is on the basis of car ownership. If a person can afford to maintain a car, his/her family should be in no need of a cooking gas subsidy. As the database of car owners is in existence, it should not be difficult to implement the proposal. Further, at the time of new car purchases, owners should be asked to produce a certificate from the gas agencies cancelling their gas subsidy.Navin Bhatia via emailLetters can be mailed, faxed or e-mailed to:The Editor, Business StandardNehru House, 4 Bahadur Shah Zafar MargNew Delhi 110 002Fax: (011) 23720201E-mail: letters@bsmail.inAll letters must have a postal address and telephone number