Now recenlty the Goverment of India has capped the subsidy payment on domestic LPG Gas Cooking at Rs.18 per kg. This news was announced on Monday by our Oil Minister Dharmendra Pradhan. Also there is an loss of Rs.167.18 on the sale of every LPG 14.2kg Gas cylinder at the recent price of Rs.417.82. The current price , all of the under-recovery is within the approval of the subsidy limits.
Pradhan said , at the present the fuel retailers of the owned state, recoveries on the sale of subsidised domestic LPG, with effect from June 2010 and October 2014. In 2015-16 the government has approved the fixed subsidy of Rs 18 on per kg under the Benefits of Transfer the LPG Domestic direct , also he said in a written reply to a question in Lok Sabha.
In the first quarter of FY16, the Indian government will be provide the Rs 1,733 crore cash on the subsidy as per the new formula to Indian Oil Corp (IOC), Rs 404 crore to Bharat Petroleum Corp Ltd (BCPL) and Rs 451 crore to Hindustan Petroleum Corp Ltd (HPCL). In other hand , the subsidy on LPG Gas, support to IOC for the Rs 2,506 crore, HPCL Rs 1,183 crore, and BPCL Rs 1,155 crore. The 12 LPG Gas cylinders of 14.2kg are supplied to every house in country with an suitable rate of Rs417.82 or there is an under recovery of Rs167.18 as per cylinder, which will be bear entirely by government.
“Now the government of India, recently launched the DBT( Direct Benefit Transfer) for LPG, where the cash subsidy will be transferred form the exchequer, which has directly go to the cooking gas consumer and the finance minister has decided to bear it totaly,” an official said. The LPG Consumers get the subsidy to the under-recovery and directly into the bank accounts of the consumers, and they can easily purchase a 14.2-kg bottle at Rs585. at the market price. But the official said that the 2015-16 budget has been provided for Rs 22,000 crore towards the LPG subsidy.