No LPG subsidy for those earning over Rs. 10 lakh a year


Recently the government of India has declared that those who earned over Rs. 10 lakh in the previous financial year will be ineligible for LPG subsidy from January 2016 onwards.


The Ministry of Petroleum and Natural Gas said in a release an announcement on Monday that “The Indian government has decided that the benefit of the LPG subsidy will not be available for LPG consumers if the income of the consumer more than Rs. 10, 00,000/- during the previous financial year.  Rules are computed as per the Income Tax Act, 1961. Now, all households are entitled to 12 cylinders of 14.2 kg at the subsidized rate of Rs. 419.26. The market price is Rs. 608 a cylinder.

In India there are 16.35 crore LPG consumers in the country and according to the government, of whom 14.78 crore receive the subsidy directly in their bank accounts.

Like this kind of decision will likely affect at least 60 lakh people, if one were to go only by the number of people who filed their returns in the government’s e-filing portal. The actual number would be much more and it would save the government Rs. 113 crore.


The government of India had also launched a scheme for people to give up their subsidies so that the less privileged would benefit. So far, 57.50 lakh LPG consumers have opted out.

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