There are nearly 16.35 crore customers of LPG in the country. Actual cost of one LPG cylinder is Rs. 608 but its subsidized rate is Rs. 419.26. The Government pays a subsidy of Rs. 188.74 per cylinder. Each consumer is allowed 12 cylinders in a year. It means that the Government has to incur expenditure of Rs.2264.86 on 12 cylinders allowed per consumer. This is a huge amount. That is the reason why Prime Minister Narendra Modi had made an appeal to the countrymen to voluntarily surrender subsidized cylinders and pay at the market rate. So far, over 57.5 lakh LPG consumers, out of nearly 15 crore customers, have given up subsidies. The Government has diverted this gesture of good will from the public to help poorer and weaker sections of society obtain gas connection.
More recently the Ministry of Petroleum has decided to ask those consumers whose income is above ten lakh rupees a year to surrender their subsidized gas cylinders. We feel this is just and in the broader interests of the country. A person with more than ten lakh rupees income per annum should be able to buy gas at market rate and not ask for charity from the Government. In order to see that this is implemented in letter and spirit, cooperation from Income Tax Department is sought to scrutinize the bank accounts of consumers and establish who come under the net. It is not punishment; it is actually what is very rational. Subsidy is meant to benefit the weaker sections of society and it is for the Government to establish the norms for ‘weaker section’.
People with reasonable income should not wait for the Prime Minister to make another appeal for prospective consumers to voluntarily surrender subsidized gas connection. Voluntary surrender of subsidized gas will go a long way in strengthening the economy of the country and helping the Government in investing in more urgent projects of development.