May 28, 2022
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Govt tries to bring LPG subsidy to ‘nil’

In order to bring the LPG subsidy to ‘nil’, the central government has given permission to the state-run oil companies to increase the price of the LPG cylinder by four rupees a cylinder every month. As per the report, the price will continue to increase until the central government launches an order asking them to stop it or the price reaches a threshold limit where the subsidy offered reaches ‘nil’ or the 2018 March. It indicates that as the subsidy decreases the price increases. It is learned that the rise in the LPG price is likely to affect lakhs of households directly. The information regarding the initiative taken by the government to eliminate all subsidies offered to the LPG gas cylinder has been publicized, in the Parliament, by the Petroleum and Natural Gas Minister of the country, Dharmendra Pradhan. It is not the first time the authorities have planned a ‘consistent price hike’ program.  Earlier, the authorities launched a program to increase the price by two a cylinder every month. It is said that as the oil prices are showing a state of inconsistency the authorities have identified that it could not reach the target with the initial hike plan. That is why the authorities have decided to increase the price further by four rupees a cylinder every month. The LPG subsidy creates a huge financial burden on the central finance. Is the elimination of the LPG subsidy a wise decision?

Vignesh

Photo Courtesy : Google/ images are subject to copyright   

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