Shares of three state-run oil marketing companies rose by 0.19% to 0.97% at 10:41 IST on BSE after the government announced that taxpayers with an annual income of more than Rs 10 lakh will not get subsidised LPG cylinders from the new year.
BPCL (up 0.97%), HPCL (up 0.94%) and Indian Oil Corporation (up 0.19%), edged higher.
The S&P BSE Sensex was up 55.55 points, or 0.21% at 26,089.68.
The Ministry of Petroleum & Natural Gas announced after market hours yesterday, 28 December 2015, that the benefit of the LPG subsidy will not be available for LPG consumers if the consumer or his/her spouse had taxable income of more than Rs 10 lakh during the previous financial year computed as per the Income Tax Act, 1961. In keeping with the approach of trusting the citizens, this will be given effect to initially on self-declaration basis while booking cylinders from January 2016 onwards, oil ministry said in a statement.
At present, there are 16.35 crore LPG consumers in the country. With the implementation of the PAHAL Scheme (DBTL), the subsidy is being transferred directly to the bank account of 14.78 crore LPG consumers. The objective of the scheme was to ensure that the subsidy benefits go to the targeted group. The government had asked well-off people to voluntarily give up using subsidised LPG and instead buy cooking fuel at market price, the statement said. So far, over 57.50 lakh LPG consumers have given up subsidies.
Public sector oil marketing companies (PSU OMCs) sell LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
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