LPG subsidy stays for now
Hyderabad: Uncertainty looms large over the implementation of scrapping domestic LPG subsidy for consumers with annual incomes of over Rs 10 lakh.
While the Centre had announced that the new policy will come into force from January, the Union Petroleum ministry is yet to issue guidelines to Oil Marketing Companies and gas distribution agencies on how to categorise consumers into income groups of less than Rs 10 lakh and more than Rs 10 lakh. In the absence of clarity, the gas agencies have decided to continue to supply subsidised cylinders to all.
In the assessment year 2014-15, 20.26 lakh taxpayers in the country were reported as having taxable incomes of above Rs 10 lakh, of which Telangana and Andhra Pradesh have nearly 3.50 lakh.
However, nearly 3.60 lakh consumers in both these states have already given up their LPG subsidy voluntarily. At present there are 82 lakh domestic LPG connections in Telangana, while AP has 96 lakh.
In response to the Centre's "Give Up LPG subsidy" drive, around 1.85 lakh consumers in Telangana and 1.75 lakh consumers in AP have voluntarily forgone the subsidy. If these 3.60 lakh consumers are part of 3.50 lakh taxpayers with over Rs 10 lakh income, there would not be any major deletions from the list of eligible consumers availing subsidy.
“We were asked to deliver subsidised cylinders for all irrespective of the Rs 10-lakh income limit till the Centre gives clarity and issues guidelines on how the income limit of consumers should be determined.
We have not received any communication from OMCs on stopping subsidised cylinders for consumers having incomes of over Rs 10 lakh. We will continue to supply subsidised cylinders for all till we receive specific instructions from OMCs," said Mr D. Ashok Kumar, president, Greater Hyderabad LPG Dealers' Association.