(ET)
Cooking gas subsidy has fallen to zero for many customers as the net price paid by domestic users has risen 20% in the past year even as crude oil rates are down 40%. Some customers are still getting a small subsidy as the final price depends on local transportation cost.
Monthly increase in the net price for subsidized consumers and the recent collapse in global rates has helped end the subsidy. With kerosene subsidy already eliminated since March, the end of the subsidy on liquefied liquefied petroleum gas (LPG) is a relief for the government at a time its revenue collection is stressed by the impact of the pandemic on the economy.
The price of a subsidized 14-kg LPG cylinder in Delhi has risen from Rs 497 in June last year to Rs 593. The subsidy for a customer in Delhi has fallen from Rs 240 to zero in the same period. However, this can change if LPG costs rise.
