Centre's LPG subsidy bill likely to be lower next year, say experts

The steep fall in crude oil prices coupled with a gradual rise in the price of subsidised domestic LPG cylinders had brought relief to the Centre this year

The government’s liquefied petroleum gas (LPG) subsidy bill for the next financial year (FY22) is expected to be much lower than previous years, say experts. This is because crude oil price is expected to remain soft, and the price of domestic (14.2 kg) LPG cylinders is likely to be kept high.

“The under-recovery (difference between subsidised price and actual price) for 2021-2022 is estimated at Rs 1,500 crore at an average Indian crude basket price of $60 a barrel and exchange rate of Rs 76 per US dollar. The subsidy allocation was Rs 38,822 crore in 2020-2021,” Prashant Vasisht, vice-president and