By withdrawing LPG subsidy, the government saved 11,654 crores in one year

Credent TV | The government is progressively eliminating the LPG subsidy. The government has put millions of rupees into the treasury by eliminating the subsidy. The central government paid Rs 11,896 crore on LPG subsidies in 2020–21, while this amount was just Rs 242 crore in 2021–22. By doing away with the subsidy, the government was able to save Rs 11,654 crore in only one fiscal year.

According to the information provided by the Petroleum Ministry, the total amount of money spent on LPG subsidies in the fiscal year 2017-18 was 23,464 crore, whereas this amount increased to 37,209 crore in the fiscal year 2018-19. Following this, the government made an appeal to the people, requesting that they give up the subsidy. In response to this appeal, crores of customers gave up the subsidy, which resulted in a decrease in the amount of money the government spent during the fiscal year 2019-20, which brought it down to 24,172 crores.

It fell by more than half during the 2020-21 fiscal year, bringing the total subsidy expenditure down to 11,896 billion rupees. Following this, the budget for this would be reduced to only Rs 242 crore in the fiscal year 2021-22.

As of June 2020, only those enrolled in the Ujjwala scheme will get LPG subsidy

In June of 2020, the government came to the conclusion that the Pradhan Mantri Ujjwala Yojana recipients would be the only people eligible to receive the subsidy on gas cylinders (PMUY). As a direct consequence of this, the number of individuals who are eligible to receive subsidies has significantly decreased. PMUY recipients are eligible to receive a subsidy from the government of up to Rs 200 per cylinder, for a maximum of 12 refills in a calendar year. The beneficiary’s bank account is credited with the subsidy for the cylinder once it has been purchased.

Within a year, the price of a gas cylinder increased by Rs 218.50

In Delhi, the price of a household gas cylinder was 834.50 rupees on July 23, 2021, but it has since increased to 1053 rupees. That is to say, the cost of a household gas cylinder has climbed by Rs 218.50 over the course of the previous calendar year. In addition to that, the subsidy for this has been eliminated.

Source: Dainik Bhaskar