By Online Desk
After quietly withdrawing the subsidy on LPG or cooking fuel a number of years in the past, the federal government has determined to reinstate the identical, on the charge of Rs 200 per cylinder, however just for ‘the poor’.
The authorities had stopped sending LPG subsidy to shoppers’ checking account round 2-3 years in the past, however by no means confirmed the transfer.
The transfer comes as the present administration on the middle seeks to return to energy generally elections to be held in round seven months.
As late as final month, it maintained that it was sending subsidies to shoppers’ financial institution accounts.
However, most shoppers have complained that they haven’t been getting the subsidy quantity for years now.
The determination to revive the 200-rupee subsidy, for some, has been taken by the Union Cabinet, in response to media experiences.
The particulars, and the official affirmation of the transfer, is but to be obtainable.
Last month, the federal government was requested the explanation why LPG cyclinder costs should not being minimize despite the fact that crude oil costs have come down significantly after hitting a peak of round $118 per barrel in May final 12 months. For the previous seven months, crude costs have been within the $60-$80 vary.
“The subsidy, as admissible, is credited to the bank accounts of eligible beneficiaries,” mentioned Hardeep Singh Puri, minister of petroleum and pure fuel, within the Rajya Sabha final month.
In distinction, the worth of 1 LPG cylinder in Chennai has been both static or rising for the previous one 12 months. For instance, they had been steady at Rs 1,068.50 till February, once they had been elevated to Rs 1,118.50, and have been at that stage since.
In Delhi, the worth of 1 14.2 kg cylinder for home use was at Rs 581 rupees in May 2020, and have since then climbed persistently to Rs 1,103 by March this 12 months. There has been no worth minimize for LPG regardless of the sharp fall seen within the worth of crude oil.
This is even if the oil advertising corporations received Rs 22,000 crore of taxpayer cash to compensate them for ‘under-recoveries’ made throughout the interval of a spike in crude oil costs in 2022.
Puri mentioned oil advertising corporations had been compelled to extend the worth of LPG cylinders as the worth of Saudi propane — the worldwide benchmark worth for LPG — went from $415 in FY21 to $712 in FY23.
However, costs haven’t fallen in sync with worldwide costs since then.
In June this 12 months, for instance, Saudi Aramco minimize the worth of propane to $450 per tonne. The present worth of propane in Saudi for August supply is $475. LPG costs, in the meantime have remained at their highest ranges since March this 12 months (see chart).
After quietly withdrawing the subsidy on LPG or cooking fuel a number of years in the past, the federal government has determined to reinstate the identical, on the charge of Rs 200 per cylinder, however just for ‘the poor’.
The authorities had stopped sending LPG subsidy to shoppers’ checking account round 2-3 years in the past, however by no means confirmed the transfer.
The transfer comes as the present administration on the middle seeks to return to energy generally elections to be held in round seven months.googletag.cmd.push(perform() googletag.show(‘div-gpt-ad-8052921-2′); );
As late as final month, it maintained that it was sending subsidies to shoppers’ financial institution accounts.
However, most shoppers have complained that they haven’t been getting the subsidy quantity for years now.
The determination to revive the 200-rupee subsidy, for some, has been taken by the Union Cabinet, in response to media experiences.
The particulars, and the official affirmation of the transfer, is but to be obtainable.
Last month, the federal government was requested the explanation why LPG cyclinder costs should not being minimize despite the fact that crude oil costs have come down significantly after hitting a peak of round $118 per barrel in May final 12 months. For the previous seven months, crude costs have been within the $60-$80 vary.
“The subsidy, as admissible, is credited to the bank accounts of eligible beneficiaries,” mentioned Hardeep Singh Puri, minister of petroleum and pure fuel, within the Rajya Sabha final month.
In distinction, the worth of 1 LPG cylinder in Chennai has been both static or rising for the previous one 12 months. For instance, they had been steady at Rs 1,068.50 till February, once they had been elevated to Rs 1,118.50, and have been at that stage since.
In Delhi, the worth of 1 14.2 kg cylinder for home use was at Rs 581 rupees in May 2020, and have since then climbed persistently to Rs 1,103 by March this 12 months. There has been no worth minimize for LPG regardless of the sharp fall seen within the worth of crude oil.
This is even if the oil advertising corporations received Rs 22,000 crore of taxpayer cash to compensate them for ‘under-recoveries’ made throughout the interval of a spike in crude oil costs in 2022.
Puri mentioned oil advertising corporations had been compelled to extend the worth of LPG cylinders as the worth of Saudi propane — the worldwide benchmark worth for LPG — went from $415 in FY21 to $712 in FY23.
However, costs haven’t fallen in sync with worldwide costs since then.
In June this 12 months, for instance, Saudi Aramco minimize the worth of propane to $450 per tonne. The present worth of propane in Saudi for August supply is $475. LPG costs, in the meantime have remained at their highest ranges since March this 12 months (see chart).
