Attention Bharatgas, Indane, HP customers: Old subsidy transfer system to return? Here's the truth

In the wake of reports claiming the Centre may bring back the old system of LPG subsidy distribution, the government issued a clarification today.

The government currently transfers subsidy only on 12 cylinders of 14.2 kg each per household in a year. Image source: Reuters

In the wake of reports claiming the Centre may bring back the old system of LPG subsidy distribution, the government has issued a clarification today. The Central government has said that it has no such proposal on change in the Direct Benefit Transfer (DBT) of LPG subsidy.

In an official statement, the Ministry of Petroleum & Natural Gas said,"Attention is invited to some press reports on change in Direct Benefit Transfer (DBT) of LPG subsidy Scheme wherein it has been reported that Government may bring back the earlier system of supplying subsidized refills to domestic LPG consumers in place of the current scheme of transfer of cash subsidy into the bank account of LPG consumers under the PAHAL Scheme."

"It is clarified that the news reports are not based on facts and there is no such proposal before the Ministry to alter the DBT mechanism."

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In the old scheme, the government used to sell LPG cylinders at subsidized rates. Currently, the customer has to buy cylinders at market rates while the subsidy amount is directly transferred to the bank account of beneficiaries.

The government currently transfers subsidy only on 12 cylinders of 14.2 kg each per household in a year.

Over 23 crore LPG consumers have received subsidy of nearly Rs 94,500 crore since November 2014 through direct benefit transfer, state-owned Indian Oil Corp had said in a statement last month.

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