Govt to ensure LPG subsidy even after privatisation of BPCL

Govt to ensure LPG subsidy even after privatisation of BPCL

Mumbai: The government will take measures to ensure LPG subsidy even after the privatisation of Bharat Petroleum Corporation Ltd (BPCL).

• If the new owners of the BPCL do not want to continue the LPG business after three years, they can transfer it to public sector companies such as the Indian Oil Corporation and Hindustan Petroleum.

• For the first three years, the LPG business of the BPCL would be considered as a 'strategic special business unit’. It will have a separate account. This is to avoid a scenario wherein the subsidy is given for a private company's product.

• Details of the subsidy given by the government and handed over to the consumers would be collected separately. This would be audited to ensure that the undeserved do not get the money.

• If the new company owners decide to continue the LPG business even after three years, then the government will provide subsidy to the consumers.

The BPCL, currently, has 7.3 crore domestic LPG consumers. The government had earlier itself made it clear that these consumers would not be denied the subsidy.

Has the subsidy been resumed?

Neither the government nor the oil companies have officially said if the LPG subsidy has been resumed. But an official, who explained about the BPCL subsidy on Tuesday, hinted that there would be a subsidy of Rs 50 for this month.

After the global crude oil prices dropped and the LPG rate was at Rs 600 per cylinder, there was no subsidy from May. But now with the LPG cylinder price increased by Rs 50, authorities hinted that a subsidy of corresponding amount has also been restored.

However, LPG suppliers said that this can be ascertained only if Rs 50 is credited to the accounts of those eligible for subsidy. And that they have not received any such communication.