LPG subsidy capped at Rs 20 per kg

NEW DELHI: The government has decided to give cooking gas consumers a fixed subsidy of Rs 284 per cylinder,making the outgo predictable instead of current ad-hoc system in which oil companies and analysts keep guessing about the amount and timing of subsidy payments by the government and upstream companies.“

The government will give Rs 20 per kg fix subsidy on LPG (liquefied petroleum gas) from November 15. The balance will be paid by the oil companies.,” Oil Minister Dharmendra Pradhan told ET. As a customer is entitled for 12 units of 14.2 kg LPG cylinders per year, annual subsidy amount per consumer will be Rs 3,408 per household.