Voluntarily pay market rates for cooking gas
Posted on: 07/Aug/2014 10:14:24 AM
The Central Government of India hopes to save Rs 3,500 crore in oil subsidies by persuading 1 crore affluent customers to voluntarily pay market rates for cooking gas in response to text messages to customers inviting them to opt out of the subsidy for the sake of `nation building`.
In support of the petroleum and natural gas ministry`s `nation building campaign,` nearly 250 Indane customers in Tamil Nadu have decided to give up their LPG (liquefied petroleum gas) subsidy and buy cylinders at non-subsidized rates. This constitutes 17% of the 1,470 Indane customers in the country who have sacrificed their subsidy to help save the exchequer88.2 lakh a year.
According to Indane, a majority of those giving up the subsidy are from New Delhi, Kerala, Andhra Pradesh and Tamil Nadu. Several foreign missions in New Delhi have also opted out the subsidy.
Oil marketing companies, including Indian Oil Corporation that owns Indane, have been sending text messages to customers asking them to give up their subsidy component to reduce the burden of the government.
Oil company officials hinted that all their employees may have to voluntarily opt out of the subsidy as a model for consumers. They said 10% of employees have given up their subsidy and more could follow suit.
