Lok Sabha Question No. 208 (STARRED), answered on 2023-08-03
Subject: Restoration of Subsidy for Cooking Gas
Ministry: PETROLEUM AND NATURAL GAS
Asked by: N.K. Premachandran

## LOK SABHA STARRED QUESTION NO. 208 TO BE ANSWERED ON 03 AUGUST, 2023

## Restoration of Subsidy for Cooking Gas

*208. SHRI N.K. PREMACHANDRAN:

## पेोलयम और ाक ृतक गैस मंी

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

(a) whether the Government proposes to restore the subsidy for domestic cooking gas, if so, the details thereof and if not, the reasons therefor;

(b)  whether  the  Government  can  provide  the  total  amount  pending  with  the  oil  companies  on account of non-transferring of subsidy to the domestic consumers and if so, the details thereof;

- (c) whether the Government proposes to transfer subsidy amount to the poor consumers who take gas connection as per the scheme introduced by the Government for the poorest and if so, the details thereof;

(d) whether the Government proposes to reduce the tax imposed on domestic cooking gas due to hike in price of cooking gas and if so, the details thereof; and

(e) whether the Government proposes to reduce the price of domestic cooking gas 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. 208 asked  by  Shri  N.K.  Premachandran  to  be  answered  on  03  August  2023  regarding 'Restoration of Subsidy for Cooking Gas'.

(a) to (e): India imports more than 60% of its domestic LPG consumption. Prices of LPG in the  country  are  linked  to  its  price  in  the  international  market.  However,  for  domestic  LPG, Government continues  to  modulate  the  effective  price  to  consumer.  Further,  Government  has started a subsidy scheme exclusively for poor households where the subsidy is credited to the bank accounts of eligible beneficiaries. W.e.f. 21st May, 2022, Government is giving 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 years 2022-23 and 2023-24.

Subsidies to the beneficiaries are released by Oil Marketing Companies (OMCs) with their own funds. After releasing the subsidies, OMCs submit bills to the Government for reimbursement through  Petroleum  Planning  and  Analysis  Cell  (PPAC)  and  the  same  is  reimbursed  by  the Government to OMCs.

During the period 2020-21 to 2022-23, the average Saudi CP (international benchmark for LPG pricing) went up from $415 per MT to $712 per MT.  However, the increase in international prices  was  not  fully  passed  on  in  retail  prices,  due  to  which  the  Oil  Marketing  Companies (OMCs) suffered under recoveries of approximately Rs. 28,000 crore on sale of domestic LPG. To compensate this, the Government approved a one-time compensation of Rs. 22,000 crore to OMCs in FY 2022-23.  During Covid Pandemic, Government also provided about 14.17 Crore free  LPG  refills  to  PMUY  households  under  Pradhan  Mantri  Gareeb  Kalyan  Package  during 2020.

Currently, domestic LPG is covered under GST which is levied at 5%. GST rates are prescribed on  the  recommendations  of  GST  Council,  which  is  a  constitutional  body  comprising  of representatives from States/ Union Territories and Central Government.

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