Only few giving up LPG subsidy voluntarily

New Delhi: Over 12,450 LPG users have so far voluntarily given up their subsidies, but this accounts for only 0.008 per cent of about 15 crore domestic cooking gas consumers in the country.

The government has been since 2012 urging the rich to give up subsidies on LPG to make them available to people who deserve it. The last such call was given soon after the NDA government came to power.

“So far (as on December 8, 2014) 12,471 consumers have voluntarily given up the LPG subsidy,” Oil Minister Dharmendra Pradhan said in a written reply in the Lok Sabha today.

The ministry 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 his/her existing domestic LPG connection into a non-subsidised domestic connection, if they so desire. This can be done by submitting a written request to the distributor or electronically via,” he said.

Consumers are currently entitled to 12 14.2-kg cylinders or 34 5-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 752 per 14.2-kg cylinder and Rs 351 per 5-kg bottle.

Pradhan said there was “no proposal under consideration of the government” to withdraw subsidy on LPG.

OMCs, he said, have also been allowed to sell 5 kg non-subsidised LPG cylinder through their petrol pumps, LPG distributors point and kirana/general stores at market price.

“As on November 11, 2014, the scheme is under operation in 84 cities,” he said.

“At the time of first sale cost of equipment, cost of product at prevailing non-domestic 5 kg cylinder price and administrative charges is payable. At the time of subsequent refill, only the cost of product is payable,” he added.

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