This story is from September 22, 2016

LPG subsidy amount on a constant decline since April 2016

LPG subsidy amount on a constant decline since April 2016
(Representative Image)
Lucknow: As a part of conscious decision by the Union Ministry of Petroleum and Natural Gas, the subsidy amount being transferred to the customer’s bank account after getting a cylinder refill is constantly declining by Rs 2 every month. The petroleum dealers of Lucnow said that the Centre wants to cease giving subsidy to people after some time, so has started decreasing the subsidy amount in a phased manner.
This is to ensure that public doesn’t panic and waving off subsidy doesn’t cause financial burden at once.
The UP chapter president of All India LPG Distributors Federation (AILDF), DP Singh said, “It is just like diesel, when the Centre was decreasing subsidy amount by 50 paise per month until few months back. The same is being done with LPG cylinders where every month, the amount is being decreased by Rs 2 every month.”
The process started in April this year. At present the cylinder’s cost is Rs 506, of which the subsidy part is only Rs 79 which is being credited in people’s account. Chandra Bhusan Choubey, chief area manager, IOC Lucknow said, “Yes it is true, the subsidy is constantly declining every month since April 2016. But a major cause is declining rates of LPG cylinders also. The subsidy is directly proportional to the rates, so when rate slashes the subsidy part also dips.”
However the dealers’ federation claimed that apart from the decreasing subsidy amount, the Ministry is deducting Rs 2 from subsidy too. Singh said, “One can verify with the subsidy calculation formula. Whatever subsidy is due, people are getting Rs 2 less every month.”
author
About the Author
Priyanka Singh

Priyanka Singh is working as Senior Correspondent with Times Of India in Lucknow. A post graduate from Indian Institute of Mass Communication (New Delhi) she carries around three years of experience in journalism. Worked with Business Standard, Zee News and Indian Express before. Likes reading, singing, watching movies and cooking. Her passion include exploring new places, photography, reading novels and music. She had also pursued marketing career in print advertisement before joining journalism.

End of Article
FOLLOW US ON SOCIAL MEDIA