Lok Sabha Question No. 236 (STARRED), answered on 2023-03-16
Subject: Subsidy on Petroleum
Ministry: PETROLEUM AND NATURAL GAS
Asked by: V. Kalanidhi

## LOK SABHA STARRED QUESTION NO. 236

## TO BE ANSWERED ON 16 MARCH, 2023

## Subsidy on Petroleum

*236. DR. KALANIDHI VEERASWAMY

## पेोलयम और ाक ृतक गैस मंी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) the amount allocated for subsidy on petroleum products in the Budget 2023-24;
- (b) whether the Government is aware that LPG subsidy given to the poor has been reduced by seventy five per cent in this Budget and if so, the reasons therefor;
- (c) whether the Government is aware that LPG is crucial for reducing domestic pollution in the country and if so, the details thereof;
- (d)  whether  the  Government  is  also  aware  that  decrease  in  subsidy  is  likely  to  affect  LPG consumption, particularly in rural areas where alternatives such as firewood, agricultural residue, dung cakes are readily available and if so, the details thereof; and
- (e)  whether  an  increase  in  the  use  of  alternative  solid  fuels  would  impact  the  health  of  rural women and children as these release particulate matters that can cause illnesses including lung cancer, heart ailments and even stroke and if so, the details thereof?

## ANSWER

## पेोलयम और ाक ृतक गैस मंी

( ी हरदप संह पुर )

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI HARDEEP SINGH PURI)

(a) to (e): A statement is laid on the Table of the House.

Statement referred to in reply to parts (a) to (e) of Lok Sabha Starred Question No. 236 asked by Dr. Kalanidhi Veeraswamy to be answered on 16 March 2023 regarding 'Subsidy on Petroleum'.

(a) to (e): Government is committed to ensure access to affordable and clean energy to all. It has  been  endeavour  of  the  Government  to  encourage  usage  of  cleaner  fuels  like  Compressed Natural Gas (CNG)/Piped Natural Gas (PNG), Liquefied Petroleum Gas (LPG), Compressed Bio Gas (CBG), BS IV Grade Petrol and Diesel, Ethanol Blended Petrol, Sustainable Aviation Fuel etc. in the country.  Government of India is determined to promote usage of natural gas, as a fuel across the country, and to increase its share in primary energy mix from around 6.7 % to 15 % by 2030.

As  a  major  step  towards  its  objective  to  provide  cleaner  fuels  to  households,  Government launched Pradhan Mantri Ujjwala Yojana in May  2016, under which  adult women from poor households are provided a deposit free LPG connection. Till December 2022, 9.6 Crore PMUY connections  have  been  provided  to  poor  households  in  the  country.  The  coverage  of  LPG  in country  has  gone  up  from  62  %  in  2016  to  almost  100%.  Number  of  active  domestic  LPG consumers have increased from 14.52 crore on 01.04.2014 to 31.36 crore as on 01.03.2023.

Traditionally, rural population in India had been mainly using fuels such as firewood, coal, cowdung, kerosene etc. for domestic cooking. It was primarily, due to issues relating to affordability, accessibility, and awareness. These traditional cooking fuels however cause significant harm to health and environment.

To increase LPG usage amongst PMUY households, Government has started a targeted subsidy of Rs 200 per 14.2 Kg domestic LPG refill for upto 12 refills per year for 2022-23 for PMUY beneficiaries. As a result of steps of the Government and Oil Marketing Companies to encourage LPG usage amongst consumers, per capita consumption of LPG by PMUY households has gone up from 3 refills in 2018-19 to 3.68 refills in 2021-22.

The funds allocated for Direct Benefit Transfer for LPG (DBTL) Scheme (Budget Estimates) for 2023-24  are  same  as  funds  for  2022-23  (Revised  Estimates)  at  Rs.  180  crore.  Government reviews its budgetary requirements during the course of year based on emerging situations and expenditure position. For instance, the funds allocated for PMUY for the year 2022-23 at Budget Estimates stage were Rs. 800 crore which were revised to Rs. 8000 crore at Revised Estimates stage.  Further,  to  insulate  domestic  LPG  consumers  from  fluctuations  in  international  prices, Government continues  to  modulate  the  effective  price  to  consumer  for  domestic  LPG.  Public Sector  Oil  Marketing  Companies  have  suffered  huge  losses  on  sale  of  domestic  LPG.  To compensate  these  losses,  the  Government  has  recently  paid  a  one-time  compensation  of  Rs. 22000  Crore  to  OMCs.  During  Covid  Pandemic,  Government  had  also  provided  about  14.17 Crore  free  LPG  refills  to  PMUY  households  under  Pradhan  Mantri  Gareeb  Kalyan  Package during 2020.

To  increase  awareness  of  benefits  of  the  usage  of  LPG,  Government  and  OMCs  have  been organising  massive  awareness  programmes  through  print,  electronic  and  social  media.  LPG consumers  including  PMUY  beneficiaries  can  book  a  refill  by  various  methods  including Interactive  Voice  Response  System(IVRS),  Short  Message  Service(SMS),  Whatsapp,  calling directly  on  the  phone  of  distributor,  e-commerce  platforms,  OMC  mobile  applications,  OMCs web-portals etc. Further, OMCs continuously expand the distribution network by commissioning new LPG distributorships.

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