The Finance Ministry has reduced the petroleum subsidy to Rs 12,995 crore for the financial year 2022, after which these discussions were strengthened that the subsidy could be scrapped.
LPG Gas Cylinder Subsidy: There is such a discussion these days about LPG i.e. LPG subsidy that the government can end it. The reduction of petroleum subsidy in the budget is being seen as an addition. Since the presentation of the budget, many things are going on in the minds of the people about the rising prices of petrol and diesel and especially the LPG subsidy. On this, Union Petroleum and Natural Gas Minister Dharmendra Pradhan has given a written reply in Rajya Sabha.
In fact, the Ministry of Finance has reduced the petroleum subsidy to Rs 12,995 crore for the financial year 2022, after which these discussions were strengthened that the subsidy can be ended. However, the government has put a stop to these doubts and discussions and said that subsidy on cooking gas is going on. It has not been closed.
LPG Gas Cylinder Subsidy: There is such a discussion these days about LPG i.e. LPG subsidy that the government can end it. The reduction of petroleum subsidy in the budget is being seen as an addition. Since the presentation of the budget, many things are going on in the minds of the people about the rising prices of petrol and diesel and especially the LPG subsidy. On this, Union Petroleum and Natural Gas Minister Dharmendra Pradhan has given a written reply in Rajya Sabha.
In fact, the Ministry of Finance has reduced the petroleum subsidy to Rs 12,995 crore for the financial year 2022, after which these discussions were strengthened that the subsidy can be ended. However, the government has put a stop to these doubts and discussions and said that subsidy on cooking gas is going on. It has not been closed.
Petroleum Minister gave information in Rajya Sabha
Union Minister Dharmendra Pradhan, quoting Oil Marketing Companies (OMC), told the Rajya Sabha that till February 1, LPG consumers have taken 1.08 crore subsidy. On the rising prices of other petroleum products including LPG, he said that their prices are linked to the international market. Despite this, the government remains subsidized for consumers of subsidized domestic LPG cylinders.
In a written reply in Rajya Sabha, he clarified that LPG consumers get these products at discounted rates. Regarding the prices, he said that the subsidy on domestic subsidized LPG increases and decreases in the international market along with the increase and decrease in the price of the product as per the decision of the government.
The scheme should be limited to the poor, subsidy burden will be reduced
Let us know that the Ujjwala scheme was launched on 1 May 2016, under which families below the poverty line are given Rs 1,600 for LPG connection. They are provided with subsidized LPG cylinders. Due to the 15th Finance Commission report, the revenue receipts through petroleum subsidy fell from 9.1 per cent in 2011-12 to 1.6 per cent in FY 2018-19. It has a direct impact on GDP.
The subsidy on kerosene was Rs 28,215 crore in the year 2011-12, which has come down to Rs 3,659 crore in the Budget Estimates for the financial year 2020-21. The burden may increase further. Although it should be limited only to the poor class, capping the number of subsidized cylinders, this burden can be reduced.
Ending subsidy, serious and political subject
Energy expert Narendra Taneja says that subsidy is a serious and political subject. Politics has been happening on this for decades. Well, as far as the decision to remove subsidy or to end it in the future is concerned, it is not a matter of jurisdiction of an officer. Whenever such a decision will be taken, the government will take it. Whichever party will be in power, the people who will be, they will decide whether to let the subsidy stay or eliminate it.
Subsidy means that the person who is in need and cannot afford any thing, then the government believes that he should be given subsidy. In the US, farmers are subsidized by 50 billion dollars. It is such a prosperous country, but the corona vaccine will be given to everyone for free. The government there has decided.
Now say that internet data pack is cheap here, tomorrow it becomes very expensive and if the government feels that it should be available to the public then subsidy can start on it. As long as there are people in the country who need subsidy… till then any government comes, subsidy will have to be given. It is a different philosophy to say, subsidy will be lost in future.
