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Govt may save over Rs.50 billion in LPG subsidy
The government could save between Rs. 50 billion and Rs. 60 billion in 2016-17 from direct benefit transfer of LPG subsidy savings from LPG subsidy had become a bone of contention last fiscal between the Oil Ministry and the Comptroller & Auditor General of India (CAG) with the latter questioning the process of calculation.
Official data show that in the April-December period this fiscal the savings have been Rs. 48.24 billion. Meanwhile, the market price (non-subsidised) of LPG has been constantly increasing since November last year. It has increased by over Rs. 200 from November to March. With effect from March 1, 2017, a consumer in Delhi will have to pay Rs. 737 for a new refill. But, this increase does not impact the subsidised LPG, as the differential between the market price and the government determined subsidised rate is directly transferred to the beneficiaries’ accounts. The prevailing subsidised rate is Rs. 434 a cylinder in Delhi. Indications are that the Ministry is taking an average subsidy between Rs. 100-Rs. 150 for the fiscal. Ozzie Smith Authentic Jersey
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