Centre may reinstate LPG subsidy in new form after request from states

THIRUVANANTHAPURAM: The central government is likely to reinstate the cooking gas subsidy, but it will have to wait until the Covid crisis is over. Petroleum Minister Hardeep S. Puri has drawn the attention of the Union Finance Ministry to the demand of the states to restore the subsidy. Oil companies have received indications that it will be reinstated when the Covid situation changes. No decision has been made on whether to restore the subsidy as it was before or to bring in new standards.

Earlier, the central government had planned to completely eliminate the affluent and subsidize others on a fixed cylinder basis. As a first step, the government has decided to bring down the number of subsidized cylinders from 12 to nine per year, and asked those who do not want the subsidy to come forward themselves. It was decided to reduce the number to nine but the subsidy was stopped before it was implemented. Arrears are unlikely to be allowed when the subsidy is reinstated. The central government claims that the proceeds from the suspension of the subsidy were used for Covid defense activities.

It is estimated that the Centre has made a profit of over Rs 20,000 crore in the last financial year due to non-payment of subsidy. Petroleum subsidies stood at Rs 40,915 crore last fiscal. This was 6% more than the previous year. Only Rs 12,995 crore has been set aside for this financial year.

Kerala Kaumudi news goes viral

The news published by Kerala Kaumudi yesterday on LPG subsidy was discussed in the public and on social media and went viral through various groups. The employees of the gas agencies said that people will no longer have to blame the gas agencies for not getting the subsidy. Some agencies also displayed news on notice boards. Trolls also spread on social media about the suspension of the subsidy.

"The decision on the subsidy should come from the central government. It does not affect supply at all. "

-Sunil Kumar, Regional Manager, LPG Division, Hindustan Petroleum.

27.76 crore LPG consumers in the country

1.15 crore have voluntarily excluded themselves from subsidy as per central request