Government has decided to increase the rates of cooking gas by Rs. 4 each month till LPG subsidy comes to an end.
What was the rationale?
LPG is a highly subsidized commodity in India.
Subsidised LPG now costs around Rs. 475 per 14.2-kg cylinder.
The rate of non-subsidised LPG, which consumers pay after exhausting their quota of below-market priced bottles, costs around Rs. 565.
The subsidy burden more than Rs. 40,000 crores/annum.
What would be the impact of this?
Opposition says that this would adversely affect the common people.
It also claims that there was no justification when global crude oil prices had gone down.
The government is failing on its social commitment to provide cooking gas at subsidised rates to the poor.
The ‘Give it Up’ campaign encouraged many to give up subsidies so that subsidised LPG could be provided to the poor and needy. The recent decision defeats this purpose.
Around 2.5 crore women who were recently given LPG connection for free would be finding it difficult to avail LPG cylinders every month.
