Centre allocates Rs 4,000 crore for Direct Benefit Transfer of LPG subsidy

Lower subsidy allocation for disbursing new connections to poor indicates saturation of new PMUY beneficiaries

There has been an allocation of Rs 4,000 crore for Direct Benefit Transfer (DBT) of cooking gas subsidy in the Budget 2022-23. This is an increase over the Rs 3,400 crore allocated for the same purpose in the revised estimates of 2021-22.

The government has not been bearing any subsidy on Liquefied Petroleum Gas (LPG) since May 2020 and the subsidy allocation is being used for moderating freight costs. This helps lower the cost of LPG to consumers in areas further away from LPG depots. The higher allocation in the coming budget is due to more expensive transport costs.

Allocation for an