LPG subsidy paused!

January 02, 2016 08:57
LPG subsidy paused!

The amendment of removing the subsidy on LPG, for the consumers with annual incomes over Rs. 10 lakhs, is stayed as of now.

The Centre earlier announced that, the new policy will come into force from January, but the Union Petroleum ministry is yet to issue guidelines to Oil Marketing Companies and gas distribution agencies, on the method of categorizing the consumers, into income groups of less than Rs 10 lakh and more than Rs 10 lakh.

If any such clarity is not found, then the gas agencies have decided to continue to supply subsidized cylinders to everyone.

In the assessment year 2014-15, the consumers with Rs. 10 lakhs and above taxable income, are 20.26, out of which 3.5 lakh people, belongs to both the Telugu states, Telangana and Andhra Pradesh.

The appreciable thing is, already 3.60 lakh consumers in both these states, have voluntarily given up their LPG subsidy. Currently, there are 82 lakh domestic LPG connections in Telangana, while Andhra Pradesh has 96 lakh.

After the Centre gave the call, “Give Up LPG subsidy”, around 1.85 lakh consumers in Telangana and 1.75 lakh consumers in AP, have voluntarily forgone the subsidy. If these 3.60 lakh consumers are part of 3.50 lakh taxpayers with over Rs 10 lakh income, there would not be any major deletions from the list of eligible consumers availing subsidy now.

Speaking on the issue, president of Greater Hyderabad LPG Dealers' Association, D. Ashok said, “We were asked to deliver subsidised cylinders for all irrespective of the Rs 10-lakh income limit till the Centre gives clarity and issues guidelines on how the income limit of consumers should be determined.”

“We have not received any communication from OMCs on stopping subsidised cylinders for consumers having incomes of over Rs 10 lakh. We will continue to supply subsidised cylinders for all till we receive specific instructions from OMCs.”

By Phani Ch

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LPG subsidy  gas subsidy news  India news