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Surrender subsidised LPG connections: Min to PSUs

In a bid to lessen the subsidy burden on government, Minister of State (I/C) for Petroleum and Natural Gas has urged officials of PSUs under his ministry to surrender the subsidised cylinders.

Directing officials of three LPG majors to encourage VIPs to surrender the subsidised connections, Pradhan said, “Lets first start with ourselves as only after that we would be able to convince others to give-up their subsidised connections. So, I request you all to stop availing subsidised cylinders,” adding that subsidised cylinders are meant for needy people.

While speaking on the sidelines of a function organised to take stock of the progress of Pahal scheme, Pradhan said, “The data available with the ministry indicate that there has been 40 per cent growth in ceiling process as till date about 9.35 lakh consumers have been added with Pahal scheme.” The minister also stressed on increasing the DBTL ceiling percentage upto 80 per cent before the budget session beginning from February 23.

Setting a deadline for LPG consumers to get registered with Pahal scheme, the minister said, “The subsidised cylinders would be available for customers across the counter till March 31 only. After the March end, i.e from April 1, LPG cylinders would be available at market price.”

Pradhan further said, “There will be a parking period for three months for customers to get registered starting from April 1. Till the parking period, subsidy of consumers will not lapse as the due subsidy will be given to them if they join the scheme within these 3 months. If they fail to get registered with Pahal in these three months, there will be no subsidised cylinder available for them.”

Consumers are currently entitled to 12 cylinders per year at subsidized rates. A subsidised 14.2kg cylinder is currently available at Rs.417 per bottle in Delhi. The 5kg pack costs Rs.155.

Non-subsidised LPG is available at Rs.708.50 per 14.2kg cylinder and Rs.351 per 5kg bottle. Giving up subsidised LPG connections will help cut the government’s subsidy bill which was Rs 46,458 crore on account of the cooking fuel last fiscal.

Public sector oil marketing companies have given an option to existing LPG consumers to convert their existing domestic LPG connection into a non-subsidised domestic connection. This can be done by submitting a written request to the distributor or electronically via www.MyLPG.in.
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