Shifting of LPG subsidy burden helps Centre adhere to budgetary allocations

The subsidy will remain within budgeted levels even though the average international price of LPG from April to October 2021 is 52.49% higher than the full-year average of FY21

India's annual subsidy burden on cooking gas is expected to remain within the Budgetary Estimates (BE) of Rs 14,073.35 crore despite the big surge in the international price of Liquefied Petroleum Gas (LPG). The subsidy will remain within the budgeted levels even though the average price of LPG in the international market (from April to October 2021) is 52.49 per cent higher than the full-year average of FY21.

Adherence to Budget 2021-22 allocations is possible because the Centre is currently bearing nil subsidy on domestic cooking gas, and has passed on the burden of moderating LPG prices to public sector