Pradhan for debate on LPG subsidy

The minister also said that govt was also planning to include kerosene in line with LPG for targetting the subsidies effectively.

Oil Minister Dharmendra Pradhan on Saturday said the time has come for the government to think on subsidy in liquid petroleum gas (LPG). Urging consumers to give up subsidy on LPG, he said there should be a nationwide debate on continuation of LPG subsidy to tax payers.

“People above a particular income should not get subsidy. The finance minister has asked me whether we should think of any income brackets for consumers to avail of LPG subsidies. I told him it is needed to think on this," Pradhan told reporters on the sidelines of a Confederation of Indian Industry (CII) seminar in Kolkata.
 

He said that since the implementation of Direct Benefit Transfer (DBT), the government has been able to save Rs 15,000 crore in the last fiscal. Government has reserved Rs 30,000 crore for petroleum subsidy in budget for current financial year, nearly half of the Rs 60,270 crore doled out last year, mainly due to the removal of subsidy on diesel. At present only kerosene and LPG are subsidised. Pradhan also said the government will soon move to direct benefit transfer in kerosene subsidy as well and was already in talks with the state governments regarding this. The minister said the idea is to make sure that the subsidy reaches the right people and prevent subsidised kerosene used in industries or for adulteration of more fuel.

According to him, 300,000 duplicate LPG connections have been terminated leading to considerable savings.