The Centre has earmarked ₹32,989 crore as cooking gas subsidy for the financial year 2019-2020. Of this, ₹29,500 crore is for disbursal under the Direct Benefit Transfer for liquefied petroleum gas (LPG) subsidy.
Another ₹2,724 crore has been provisioned for LPG connections to poor households, and ₹674 crore is for an additional subsidy payable for the North-Eastern region.
The total subsidy amount is 62.64 per cent higher than the ₹20,283.18 crore total LPG subsidy incurred during financial year 2018-2019. The higher budgetary allocation is based on expectations that crude oil prices will firm up. The number of LPG connections is also expected to go up.
The ‘Indian basket’ of crude oil (the average price at which Indian refiners buy crude oil) averaged $56.43 a barrel during the financial year 2017-2018. Read more
Latest posts by The Hindu Businessline (see all)
- Fast depleting coal reserves could push up energy prices, cautions expert - February 17, 2019
- Peak power supply deficit halves over 5 years - February 17, 2019
- Shipping industry jittery over fuel cost as deadline for new emission norms nears - February 17, 2019