Enhance LPG subsidy amount: RWAs

Anantapur: LPG gas consumers are unhappy at Prime Minister Narendra Modi stopping reimbursement of gas subsidy to consumers since September 2020. Many consumers had been under the impression that the subsidy amount was being credited into their bank accounts. Distributors across the nation receiving thousands of complaints from consumers that only meager amount is credited to their bank account.

Cylinders have to be bought at full price at the time of purchase, and the subsidy is then credited to customers bank account by the government. However, most customers have not received subsidies since May 2020, as the combination of international oil price collapse and domestic refill rate increase diminished the gap between subsidised and market rates. The price of a commercial LPG cylinder of 14.2 kg has been hiked by Rs 100 a cylinder in AP and Telangana. After the price revision, the price of domestic gas cylinder is Rs 761 in AP. The price has been implemented across the country in the same manner.

Housewife Indrani Devi told The Hans India that she had not been receiving LPG subsidy amount for over 6 months. She demanded the Central government to know whether it is an unofficial method of doing away with the subsidy culture. The Centre should make a public announcement if it is their policy to do away with economic subsidies.

Federation of Residential Welfare Association president Suresh Babu and secretary Vyshnava Sreenath said while the coronavirus, economic crisis and unemployment have hit all Indians, both rich and poor, like a 'tsunami', the farmers, workers and middle-class have been the worst victims. For May, June and July, the residents haven't received Direct Benefit Transfer (DBT) on their LPG cylinder purchases. From May to July, the hike in cooking gas price has been below Rs 10 per 14.2 kg cylinder due to favourable international oil prices amid pandemic. During this period, consumers have not received any subsidy for their purchases as it is reportedly the low oil prices in the market that has eliminated the need for subsidy. Between July-December 2020, rates of 14.2 kg subsidised LPG cylinders have been raised by Rs 200.

These rates are generally revised at the start of every month based on changes in the international oil prices and the Indian rupee's valuation against the US dollar. Frequent increase in the price of subsidised cooking gas and a fall in global oil and product prices, the government has eliminated oil subsidy burden on account of LPG since May 2020. With oil prices expected to be range blind closer to current levels, the government may not need Rs 37,256 crore as LPG subsidy provided in FY21. Residential welfare associations demand the government to enhance the subsidy amount, which will be helpful to poor consumers.