Press Information Bureau
Government of India
Ministry of Petroleum & Natural Gas
12-October-2015 19:40 IST
Subsidies on LPG Cylinders

This is in connection with the news items on subsidies on LPG Cylinders pertaining to inflated claim of the Govenment about subsidy savings as a result of Pahal. In this connection, it may be mentioned that the subsidy outgo, and consequent subsidy savings, is a result of multiplicity of factors namely (a) Prevailing Crude Price; (b) Prevailing Exchange Rate; and (c) Tax Structure in various States.

As on 1st April, 2015, there were 18.19 crore registered LPG Consumers and 14.85 crore active consumers implying a gap of 3.34 crore consumers which are duplicate / fake / inactive accounts blocked under PAHAL Scheme and related initiatives. If we take into account the quota of 12 cylinders per consumer and the average LPG subsidy of Rs.336 per cylinder for the year 2014-15, estimated savings in LPG subsidy due to the blocking of 3.34 crore accounts work out to Rs.14,672 crore, during that year.