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Press Information Bureau
Government of India
Ministry of Petroleum & Natural Gas
25-April-2016 17:57 IST
Subsidy on Petroleum Products

The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that the details of subsidy/under-recovery on Diesel, PDS Kerosene and Domestic LPG since 2012-13 is as follows:

 

Subsidy/ Under-recovery on Petroleum Products

Particulars

2012-13

2013-14

2014-15

9M, 2015-16

Diesel – Under-recovery of OMCs

92,061

62,837

10,935*

0

 

 

 

 

 

PDS Kerosene

 

 

 

 

Under-recovery of OMCs

29,410

30,574

24,799

9,993

PDS Kerosene and Domestic LPG Subsidy Scheme, 2002

741

676

0

0

Freight Subsidy (For Far-Flung Areas) Scheme, 2002

5

5

5

0

Total Subsidy on PDS Kerosene

30,156

31,255

24,804

9,993

 

 

 

 

 

Domestic LPG

 

 

 

 

Under-recovery of OMCs

39,558

46,458

36,580

8

PDS Kerosene and Domestic LPG Subsidy Scheme, 2002

1,989

1,904

0

0

Freight Subsidy (For Far-Flung Areas) Scheme, 2002

18

16

18

0

Total DBTL Subsidy (claims)

0

3,869

3,971

12,084

Total Subsidy on Domestic LPG

41,565

52,247

40,569

12,092

 

 

 

 

 

Total Subsidy/ Under-recovery on Petroleum Products

163,782

146,339

76,308

22,085

* up to 18.10.2014 only

 

 

The major steps taken by the Government to reduce the subsidy/ under-recovery burden are given below:

(i)     Diesel price was made market determined effective 19th October 2014.

 

(ii)   Petrol price was made market determined effective 26th June 2010.

 

(iii)   The Government has also launched Direct Benefit Transfer Scheme (PAHAL) in the entire country effective 1st January 2015 wherein the subsidy on Domestic LPG is provided only to the eligible consumer directly in their bank account.  Further, on 28th December 2015, the Government has decided that the benefit of the LPG subsidy will not be available for LPG consumers if the consumer or his/her spouse had taxable income of more than Rs 10,00,000/- during the previous financial year computed as per the Income Tax Act, 1961.

 

(iv)  The quota of PDS Kerosene has been rationalized over the years resulting in reduction in subsidy.

 

As on date more than 1 crore LPG customers have given up LPG subsidy under the ‘GiveItUp’ campaign.  The approximate annual subsidy saving is likely to be in the range of Rs. 1668 crore (approx.) assuming an average subsidy of Rs. 139 per cylinder.

‘GiveItUp’ campaign is a continuous process and wide publicity is given for voluntarily surrender of subsidy. 

           

To provide clean fuel to every household in the country, Public Sector Oil Marketing Companies (OMCs) propose to release 10 crore new LPG connections during 2016-19 in mission mode. Out of these 10 crore new connections, 5 crores will be released free of cost to women belonging to the Below Poverty Line (BPL) families under Pradhan Mantri Ujjwala Yojana (PMUY) Scheme. 

 

 

 

YKB/Rk