LPG cylinder subsidy: Is Govt planning to abolish it?

New Delhi: After Finance Ministry reduced the allocation for petroleum subsidy, there is an apprehension that government may drop the LPG cylinder subsidy.

Citing media reports, Zee News also reported that government may abolish the subsidy.

Petroleum subsidy slashed

The Union Budget has slashed the allocation for petroleum subsidy from Rs. 40,915 crore in the previous year to Rs. 12, 995 crore in 2021-22, Deccan Herald reported.

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It is also reported that the government is likely to use the allocated subsidy amount mainly on the Ujjwala Scheme as it wants to increase the number of beneficiaries by one core in one year.

Ujjwala Scheme

Under the scheme, persons belonging to economically weaker sections get subsidized LPG gas connection and cylinder. At present, the number of beneficiaries of the scheme is eight crores.

As the government on the one hand wants to increase beneficiaries of Ujjwala schemes and on the other, it reduced the allocation for petroleum subsidy, apprehension prevails that it will have an impact on the direct benefit transfer (DBT) scheme.

Under the DBT scheme, every beneficiary gets subsidy on 12 LPG cylinders per annum.  

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