GoodTime Nation - Top WebStories in India

Subsidy on LPG cylinder may end, higher price will have to be paid


Subsidy on LPG cylinder may end, higher price will have to be paid 1

new Delhi. LPG gas cylinders are subsidized by the government to lighten the burden of pockets of poor families. But now it may end soon. Actually, the government is planning to reduce the extra burden on the state exchequer. In the recently presented budget 2021-22, the Finance Minister had said that one crore new beneficiaries were added to the PM Ujjwala scheme. This will increase the additional burden on the government. To reduce this, the prices of LPG cylinders can be increased.

According to an English news report, the government is moving towards ending the subsidy. This is the reason why the prices of kerosene and LPG are continuously increasing. Last year also the price of LPG was increased. This was the reason that those who took cylinders were not getting much benefit of subsidy. It is known that retail fuel sellers revise the price of LPG cylinders. Whereas kerosene is sold through the public distribution system at a discounted rate.

Decline in revenue
According to the 15th Finance Commission report, the revenue that was received in 2011-12 has come down to 1.6% from 9.1% in 2018-19. While the kerosene subsidy was Rs 28,215 crore in the year 2011-12, it has come down to Rs 3,659 crore in the budget estimate for the financial year 2020-21. In such a situation, it is believed that the government can limit the subsidy to a fixed time and class to compensate for this deficit.


Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.