No DBT on subsidised LPG for 3 months due to favourable oil market

You may not have noticed it but the price of subsidised cooking gas rose by an average of just less than Rs 10 per cylinder per month in the July-June 2019-20 period, taking the price of common man’s fuel closer to market rates.

What this has done is to stop consumers receiving any subsidy in their accounts for buying domestic LPG cylinders at market rates for the past three months, believing low oil prices in the market has eliminated the need for the subsidy.

But had oil companies refrained from consistently raising the price of subsidised cooking gas as well, from a level of Rs 494.35 a cylinder in July last year to Rs 594 now, a 14.2 kg domestic LPG cylinder price would have been more than Rs 100 cheaper, providing relief to consumers during the Covid-19 pandemic.

Under the direct benefit transfer scheme (DBT), the government provides subsidy on 12 cylinders a household uses in a year.

ET Energy World
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