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Those giving up LPG subsidy can get it back in a year

A subsidized cylinder costs Rs 419.13 in Delhi, while a non-subsidized refill for domestic use costs Rs 509.50

Policy Pulse
Publish Date: Apr 23 2016 2:40PM | Updated Date: Apr 23 2016 2:40PM

Those giving up LPG subsidy can get it back in a year

LPG consumers who have voluntarily given up the subsidy will be free to reclaim it in a year from now, even as the government looks at various options that may be offered after the present run of PM Modi's 'Give It Up' campaign ends in a year.

 

"The campaign is for one year. Consumers will be free to change their mind. There will be no auto-renewal (of the subsidy surrender)," oil minister Dharmendra Pradhan said on Friday, when asked whether consumers can claim the subsidy in case prices spike and the gap between the subsidized and market prices widens in future.

 

A subsidized cylinder costs Rs 419.13 in Delhi, while a non-subsidized refill for domestic use costs Rs 509.50. Consumers are currently entitled to 12 subsidized cylinders of 14.2 kg each in a year.

 

"The economic factor is secondary. The credibility of the scheme is primary. It is the people's belief in the PM that holds the key to the success of 'Give it Up'," Pradhan said, thanking the 1.13 crore households that have voluntarily given up the cooking gas subsidy since the PM's appeal over a year ago.

 

Modi had launched the campaign on March 27, 2015. While inaugurating 'Urja Sangam', a global energy meet, he had appealed to the economically well-off to voluntarily surrender the subsidy, and promised to give back LPG connections to poor households. On May 1, Modi is set to kick off 1 an Rs 8,000-crore scheme under the parallel 'Give It Back' campaign to give free LPG connections to women from five crore BPL families in three years.