LPG subsidy down by 86% from FY20

Even as the price of a cooking gas cylinder continues to rise, breaching ₹1,000 for the fist time this month, the government has reduced subsidies on it by as much as 86% in the past three years, from ₹29,628 crore in 2019-20 to an estimated ₹4,000 crore in the current financial year, official data show. The subsidy on domestic liquefied petroleum gas (LPG) through direct benefit transfer has been stopped in many markets, including Delhi, since May 2020, when it was priced at ₹581.50 per 14.2kg cylinder. It continues to subsidise additional transportation costs to consumers in remote areas, which is often less than ₹50 per cylinder, four people aware of the development said, requesting anonymity. Cooking gas became costlier by ₹50 per cylinder on May 7, the second rate hike in less than two months, as the price crossed ₹1,000 for a refill in many places.