Govt may do away with LPG subsidy for upper-most income bracket
NEW DELHI: The government is considering doing away with the LPG subsidy for the well-off, according to media reports.To start with, LPG subsidy for the upper-most income bracket (30 percent tax slab) is likely to be withdrawn.
After coming to power, the Narendra Modi-led government deregulated diesel prices and linked them to the market rate. Earlier, the government used to provide subsidy on diesel. Petrol prices were deregulated by the UPA government.
Currently, 12 LPG cylinders are available to consumers at a subsidised rate of Rs 414 each (in Delhi). Consumers are currently entitled to 12 cylinders per year at subsidized rates. A subsidized 14.2kg cylinder is currently available at Rs.417 per bottle in Delhi. Any requirement beyond this will have to be purchased at the market price of Rs 880 per 14.2-kg cylinder.
Withdrawal of subsidized LPG connections will help cut the government’s subsidy bill which was Rs 46,458 crore on account of the cooking fuel last fiscal.
The Budget 2015 is likely to lay down a detailed roadmap for the LPG subsidy regime.