Cooking Gas Subsidy to be cancelled for higher income-group families? Central Government explores!
Posted on: 08/Jul/2014 2:38:15 PM
Currently, the central government offers subsidised cooking gas (up to 12 cylinders per year) for all income groups.
For purchase of cooking gas exceeding 12 cylinders, non-subsidised rates are applied.
Subsidies are offered by the central government for petrol, diesel, and kerosene as well.
These subsidies are additional financial burden for the government.
Oil companies recommended a reduction in the subsidy of these items and suggested that the price of the cooking gas be raised by Rs. 250/-. As the government considered that this rise would unduly affect the middle class and poor families, it has so far hesitated to take the step of rising the cooking gas price.
As an alternative, the government is exploring the possibility of cancelling the subsidy for cooking gas for the higher income groups. This means that the higher income group may have to pay for the cylinder in full without any subsidy. The government hopes that this will reduce the subsidy burdent to a certain extent.
The issue of raising the diesel price was not considered as it would tend to cause more inflation.
Another step is considered for stopping the subsidy for kerosene and paying this directly to the buyer. It is felt that this step will reduce hoarding and black marketing in kerosene sales.
