The subsidy on Liquified Petroleum Gas or LPG should be limited, the Government sources said as they think only the most needy should be given subsidy. The Petroleum Ministry is reviewing the current LPG subsidy regime, the sources said while further adding that all the economic utilities should be viable.
“The consumption of fuel is 15-16 per cent higher than the pre-Covid levels. Fuel price above $70 a barrel is high for a country like India. Crude supply from OEC plus countries is not able to meet the domestic demand. We are in talks with OPEC plus countries to increase production,” the sources said.
It is to be noted that the petroleum subsidy stood at 9 per cent of the Budget Estimate (BE), or a little over Rs. 1,230 crore in the April-July period of FY22, down from over Rs. 16,000 crore, or 40 per cent of BE, the last fiscal. The subsidy is being provided mainly for customers in far-flung areas, industry sources had said.