After petrol, the price of gas cylinders has skyrocketed and the subsidy has not been decided yet - Newztezz Online


Tuesday, December 8, 2020

After petrol, the price of gas cylinders has skyrocketed and the subsidy has not been decided yet

New Delhi
: The price of a cylinder of cooking gas has gone up by Rs 50 this month. 
However, it is not yet clear whether the government will subsidize consumers to offset the price hike. In December, the price of a cylinder rose to Rs 644 in Ahmedabad.

On the other hand, people who have been buying cooking gas cylinders since May have not received any subsidy. Even as domestic gas and crude prices plummeted in the international market, prices fell or remained stable. Consumers were also stopped from paying subsidies as the market rate and the subsidized rate became the same.

In June last year, the price of a subsidized gas cylinder in Delhi was Rs 497. However, since then, its price has gone up by Rs 147. In June 2019, consumers in Delhi were paid a subsidy of Rs 240 per cylinder.

According to sources in the state-owned oil company, the government has not yet given any notice to the companies on whether the buyers will get subsidy in December.

In the financial year 2019-20, the central government will provide a subsidy of Rs. 22,635 crore. In 2018-19, this amount was Rs 3,447 crore. However, due to falling crude prices this year, in the first six months of the financial year 2020-21, the government subsidized only Rs. Only Rs 1126 crore has been paid.

Like the gas subsidy, the subsidy paid to the government on kerosene has also benefited greatly. In 2019-20, Rs. A subsidy of Rs 1869 crore was paid. However, the government has not paid any subsidy on kerosene this year as state-owned petroleum companies now sell kerosene at market prices.

If there is no significant fluctuation in the price of petroleum in the international markets by March 2021, the government will be able to save a substantial amount of subsidized money this financial year.

Petrol and diesel prices have been rising steadily for the past few days. Today's price of petrol in Ahmedabad has crossed Rs 81, while in Mumbai petrol is being sold at more than Rs 90.

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