new Delhi: You must have noticed that subsidy on LPG gas is not coming in your bank account. In fact, the government has abolished the subsidy you received from May. The Prime Minister Ujjwala Yojana (Pradhan Mantri Ujjwala Yojna) was launched by the Modi government (Modi Govt) for the purpose of delivering gas cylinders from door to door and a subsidy was offered to give cheaper LPG cylinders (LPG Cylinder) to the poor. But now the concession on cylinders is almost over. We are telling why the subsidy received in LPG has ended …
This is the reason for not getting subsidy
The Union Petroleum Ministry has told through a tweet that the market price of gas cylinders, ie the price of non-subsidized cylinders, has come down. Meanwhile, the prices of subsidized cylinders have increased. In this case, the price difference between the two cylinders is almost over. This is the reason that the government has now stopped subsidizing cylinders.
Subsequent to the downward revision of price of LPG refills from the month of May 2020, there is no subsidy element in price. Hence there would not be any transfer of subsidy for the refills supplied during May’2020 and Jun’20.
– MoPNG e-Seva (@MoPNG_eSeva) July 25, 2020
Understand it easier
Experts say that in July last year, the market price of 14.2 kg gas cylinders (market rate) in Delhi was Rs 637, which has now come down to Rs 594. In contrast, the price of subsidized cylinder has increased by Rs 100. That is, the price of a cylinder found at Rs 494.35 has increased to Rs 594. Overall, the price of the cylinder available in the market and subsidized cylinder is equal. In this case, giving subsidy does not make sense.
Subsidy is getting very less
Under the Ujjwala scheme, 8 crore people get the benefit of gas cylinder subsidy. Experts are saying that in most metros the subsidy is almost over. But up to Rs 20 subsidy is being given to the beneficiaries living in remote areas. This money is also available due to transport costs.
It is noteworthy that in the 2019-20 financial year, the central government had allocated Rs 34,085 crore for LPG subsidy. Similarly for the year 2020-21, about Rs 37,256.21 crore has been allocated under this head.