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Union government paid Rs7.03 trillion in fuel subsidies since 2011-12
The Union government has paid Rs7.03 trillion in fuel subsidies since 2011-12, minister of state for petroleum and natural gas, Rameswar Teli said in a reply in Lok Sabha today.
“The prices of petroleum products in the country are linked to the price of respective products in the international market. The Government continues to modulate the effective price to consumer for subsidised domestic LPG,” ministry of petroleum and natural gas said in a statement.
Price of non-subsidised domestic cooking gas has been increased in the backdrop of the finance ministry slashing allocation for petroleum subsidy by two-thirds to ₹129.95 billion for FY22.
“The Budget Estimates for F.Y. 2021-22 for LPG & Natural Gas (NG) subsidy is Rs. 129.95 billion,” the statement said.India had 287.4 million LPG consumers as on 1 January 2021, with the Pradhan Mantri Ujjwala Yojana, a government programme that aims to provide free cooking gas connections to poor families, increasing India’s LPG coverage to 99.5% on 1 January this year from 61.9 % as on 1 April 2016.
“The prices of non-subsidized Domestic LPG are however determined by the OMCs in line with changes in the international markets. The subsidy on the product increases/decreases with the increase/decrease in the product price in international market and decision of Government on subsidy,” the statement added.
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