The Union government has disbursed Rs 7.03 trillion in fuel subsidies since 2011-12

New Delhi: The Union government has paid Rs.73 trillion in fuel subsidies since 2011-12, Minister of State for Oil and Natural Gas Rameswar Teli said in a response to Lok Sabha today ‘hui.

“The prices of petroleum products in the country are linked to the prices of the respective products on the international market. The government continues to modulate the effective consumer price of subsidized domestic LPG, ”the Ministry of Petroleum and Natural Gas said in a statement.

The price of unsubsidized domestic cooking gas has been increased in the context of the Ministry of Finance cutting by two-thirds the allocation of oil subsidies to 12,995 crores for FY22.

“The budget estimate for the 2021-22 fiscal year for the LPG and natural gas (NG) subsidy is Rs. 12,995 crore,” the statement said.

India had 28.74 crore of LPG consumers as of January 1, 2021, with the Pradhan Mantri Ujjwala Yojana, a government program that aims to provide free cooking gas connections to poor families, increasing the LPG coverage of the country. India at 99.5% as of January 1 of this year, compared to 61.9% as of April 1, 2016.

“The prices of non-subsidized domestic LPG are however determined by the MOCs according to the evolution of the international markets. The subsidy on the product increases / decreases with the increase / decrease in the price of the product in the international market and the government’s decision on the subsidy, “the statement added.

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About Christopher Easley

Christopher Easley

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