The government is eyeing a huge savings in subsidy this year on cooking gas.
The savings is because the price of a domestic LPG or cooking gas cylinder of 14.2 kg has been hiked by ₹100 a cylinder from July 2019 to July 2020.
The price of a subsidised domestic LPG cylinder increased from around ₹494.35 a cylinder in July 2019 to ₹594 a cylinder in July this year across the country. It will temper a bit more when the price of domestically produced natural gas is revised for the October-March 2021 period.
“There would be a subsidy savings of between ₹18,000 crore and ₹22,000 crore because of the rise in domestic LPG cylinder prices. In 2019-20, the LPG subsidy outflow stood at ₹22,635 crore. Till now, in the first quarter of 2020-21, there has been a subsidy outgo of just ₹1,905 crore. This is a significant saving