Consumers getting no subsidy on cooking gas for past 5 months
Kochi: It has been more than 5 months since consumers were provided cooking gas subsidy. The price of subsidised and non-subsidised 14.2 kg cooking gas is identical and hence the subsidy amount became zero. Here, both cylinders have been at Rs 601 for months. As the distance differs there can be small difference in price.
Following the Covid pandemic, there has been a global fall in oil prices and frequent rise in LPG gas cylinder price which brought the price of the common man's fuel closer to market rates.
In India, domestic prices of LPG are determined from the import parity price (IPP) which is based on international LPG prices. Saudi Aramco’s LPG price acts as the benchmark for the IPP and includes the free-on-board price, ocean freight, customs duties, port dues and the like. Apart from this bottling charges, dealer commission and GST are also included.
Any change in the price of LPG in international market will directly affect the Indian markets. However, the oil companies decide on cooking gas price at the start of each month following which the central government decides subsidy amount each month.
The oil companies claimed that other factors in including the price of LPG is confidential. Since June, the price has been unchanged. When the non-subsidised LPG price fell to the same, the subsidy amount according to Direct Benefit Transfer (DBT) became zero. The price of subsidised LPG cylinders had raised by around Rs 100 in a year.
In the start of pandemic the domestic LPG price for 14.2 kg was reduced in April. It fell to Rs 734 from Rs 850.50 in February. Later it further decreased to Rs 601.