Lok Sabha Question No. 2626 (UNSTARRED), answered on 2022-12-22
Subject: Subsidy for Domestic Gas
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Hanuman Beniwal

## LOK SABHA UNSTARRED QUESTION NO. 2626 TO BE ANSWERED ON 22 DECEMBER, 2022

## Subsidy for Domestic Gas

## †2626. SHRI HANUMAN BENIWAL:

## पेोलयम और ाक ृतक गैस मंी

- Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state: (a)  the  details  of  subsidy  being  given  to  consumer  on  domestic  gas  cylinder  at  present  in  the country, State-wise; (b) the details of subsidy given on domestic LPG cylinders from 1st April, 2019 to 31st October, 2022, State-wise; (c)  whether  the  subsidy  is  currently  withdrawn  and  if  so,  the  details  of  the  scheme  of  the Government to start subsidy again and if not, the details of the scheme of the Government to increase the currently payable subsidy or reduce the price of domestic gas cylinders; and (d) whether the State Governments have any provision or rule to provide domestic gas cylinders

free of cost or provide subsidy at their level and if so, the details thereof?

## ANSWER

## पेोलयम और ाक ृतक गैस मंालय म राय मंी ( ी रामे वर तेल )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI RAMESWAR TELI)

(a) to (d): The  prices  of  petroleum  products  in  the  country  are  linked  to  the  price  of respective products in the international market. Prices of LPG in the country are based on Saudi Contract Price (CP), the benchmark for international prices of LPG. However, the Government continues  to  modulate  the  effective  price  to  consumer  for  Domestic  LPG.  The  subsidy,  as admissible, is credited to the bank account of eligible beneficiaries. In addition, w.e.f. 21 st May, 2022,  the  Government  has  announced  a  targeted  subsidy  of  Rs.200  per  14.2  Kg  cylinder  for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for upto 12 refills a year for year 202223. This targeted subsidy is uniform across all States and Union Territories.

The details of subsidy on LPG given by Government since April 2019 are given below: (Rs. /Crores)

| Particulars                                             | 2019-20   |   2020-21 | 2021-22(P)   |
|---------------------------------------------------------|-----------|-----------|--------------|
| Direct Benefit Transfer for LPG (DBTL) subsidy (A)      | 22726     |      3658 | 242          |
| Pradhan Mantri Ujjwala Yojana (PMUY) subsidy (B)        | 1446      |        76 | 1569         |
| Pradhan Mantri Garib Kalyan Package (PMGKP) subsidy (C) |           |      8162 |              |
| Total Subsidy on LPG (A+B+C)                            | 24172     |     11896 | 1181         |

Source: Petroleum Planning and Analysis Cell (PPAC)    P-Provisional

During the period from April 2020 to April 2022, the international prices of LPG increased by around 300%. However, to insulate consumers from fluctuations in international LPG prices, the cost  increase  was  not  fully  passed  on  to  consumers  of  domestic  LPG.  Accordingly,  domestic LPG prices have risen by only 72% during this period. This has led to significant losses for these OMCs.  To  compensate  these  losses,  the  Government  has  recently  approved  a  one-time compensation of Rs. 22000 crores to OMCs. State governments can bear partial/full cost for LPG refills to consumers from their own budget.

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