How govt saved over Rs 20,000 cr by silently applying brakes on LPG subsidy

While there was no need for subsidy in the low-oil-price phase of 2020, LPG prices have zoomed in 2021. But the Centre has not transferred subsidy at any point this year

On September 1, 2021, cooking gas in India became dearer by Rs 25 to take its price tag to Rs 885 per 14.2 kg cylinder in the national capital. LPG price in the country has risen by more than Rs 300 since May 2020. 

Rising crude oil prices have definitely been the reason for this. Brent crude futures have risen from their May 2020-low of $21.44 per barrel to $72.7 per barrel at the end of August 2021, according to Bloomberg. 

To save Indian households from spikes like these, the Government of India has been subsiding cooking gas for consumers,