Govt eyes annual savings of Rs 300 crore from removal of LPG subsidy

With 20 lakh consumers in the pay bracket, the calculation is based on annual usage of 8 cylinders per household at the current level of subsidy of Rs 189 per cylinder

Subsidised LPG cylinders

The government’s latest decision to cut subsidised cooking gas sales to consumers with an annual taxable income of above Rs 10 lakh is likely to translate into annual liquefied petroleum gas (LPG) subsidy savings of Rs 300 crore, according to the oil ministry. This is in addition to savings from the elimination of duplicate or fake connections as a result of implementation of the direct benefit transfer for LPG (DBTL) scheme — Rs 14,600 crore in FY15 — and additional savings of around Rs 2,000 crore through the GiveitUp campaign under which 5.7 million consumers have ...