Affluent section may lose LPG subsidy

Unable to eliminate fuel subsidy altogether, the government is now planning to stop people from affluent sections of society from availing oil and gas doles.

“We are trying to restrict the supply of subsidised LPG refills to only those who actually need it. In India, the criteria to determine a person’s income are vague, but in cases where high income is evident, we can always implement the rule,” a petroleum ministry official said.

Non-Resident Indians (NRIs) and those coming to pursue their career or earn a living on Indian soil may be the first hit.

Under the drive, very soon LPG connections in the name of an NRI will no more be eligible for state subsidy. Till now, any person having a household LPG connection got up to nine cylinders annually at subsidised rates.

“In case of NRI’s, we are soon going to come out with a regulation whereby they will not be given subsidised cooking gas refills,” he said.

There are over 2.5 crore NRIs living in different parts of the world at present. The exact number of foreign nationals arriving in India to study or pursue a career is also not known.

According to ministry sources, most NRIs have retained LPG connections in their name, even after shifting out of India.

Unable to eliminate fuel subsidy altogether, the government is now planning to stop people from affluent sections of society from availing oil and gas doles.

“We are trying to restrict the supply of subsidised LPG refills to only those who actually need it. In India, the criteria to determine a person’s income are vague, but in cases where high income is evident, we can always implement the rule,” a petroleum ministry official said.

Non-Resident Indians (NRIs) and those coming to pursue their career or earn a living on Indian soil may be the first hit.

Under the drive, very soon LPG connections in the name of an NRI will no more be eligible for state subsidy. Till now, any person having a household LPG connection got up to nine cylinders annually at subsidised rates.

“In case of NRI’s, we are soon going to come out with a regulation whereby they will not be given subsidised cooking gas refills,” he said.

There are over 2.5 crore NRIs living in different parts of the world at present. The exact number of foreign nationals arriving in India to study or pursue a career is also not known.

According to ministry sources, most NRIs have retained LPG connections in their name, even after shifting out of India.

Those barred from getting subsidised LPG bottles will have to buy it at the market rate. Each non-subsidised 14.2-kg cooking gas cylinder currently costs Rs 1,241 in Delhi, about three times that of a cylinder of subsidised LPG.