Jaitley gives up subsidised LPG

Finance Minister has set an example by giving up subsidy on LPG, tweeted Dharmendra Pradhan

Finance Minister Arun Jaitley has given up use of subsidised LPG, joining a list of well-to-do people who opted to buy cooking gas at market rate. “Finance Minister has set an example by giving up subsidy on LPG; others who can afford should join this initiative,” Petroleum Minister Dharmendra Pradhan tweeted.

The government has asked the rich people to give up subsidies on LPG to make them available to people who deserve it. Several industrialists, politicians and bureaucrats have voluntarily given up the subsidised cooking gas.

Pradhan, who gave up his subsidised cooking gas several months back, made a renewed appeal to the affluent class to give up using below market price LPG.

“Volunteering to give up LPG subsidy amounts to contributing for national development & empowerment of poor people, who will be the beneficiary,” he tweeted.

He has urged ministers, MPs, MLAs, senior government officials and executives of public sector companies to give up their subsidies.

Public sector oil marketing companies (OMCs) have given an option to existing LPG consumers to convert their existing domestic LPG connection into a non-subsidised domestic connection. This can be done by submitting a written request to the distributor or electronically via www.MyLPG.in.

Consumers are currently entitled to twelve 14.2-kg cylinders or 34 five-kg bottles in a year at subsidised rates.

Any requirement above that has to be procured at market price.

A subsidised 14.2-kg cylinder is currently available at Rs 417 per bottle in Delhi. The subsidised cooking gas is also available in 5-kg packs, costing Rs 155 per such cylinder in Delhi.

Any requirement beyond the subsidised quota is to be met through purchase of cooking gas at market price - Rs 708.50 per 14.2-kg cylinder and Rs 351 per 5-kg bottle.

Giving up subsidised LPG will help cut government's subsidy bill which was Rs 46,458 crore on the fuel last fiscal.