Direct Benefit Transfer for LPG (DBTL) Scheme (Budget Estimates) for 2023-24

3530. ADV. DEAN KURIAKOSE:

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

(a) whether the Government has reduced allocation under LPG subsidy from Rs. 5812.50 crores at Budget Estimate (BE) 2022-23 to Rs. 2257.09 crores at BE 2023-24 stage and if so, the details thereof;

(b) the steps taken/to be taken by the Government to ensure the growth of already saturated LPG market; and

(c) whether the Government has adopted any delineated policy of linking LPG cylinder prices with international crude prices and if so, the details thereof?

(a): The funds allocated for Direct Benefit Transfer for LPG (DBTL) Scheme (Budget Estimates) for 2023-24 are same as funds for 2022-23 (Revised Estimates) at Rs. 180 crore. Government reviews its budgetary requirements during the course of year based on emerging situations and expenditure position. For instance, the funds allocated for PMUY for the year 2022-23 at Budget Estimates stage were Rs. 800 crore which were revised to Rs. 8010 crore at Revised Estimates stage.

(b): As a result of several steps taken by Government, India’s total LPG consumption has increased from 19623 TMT in 2015-16 to 28503 TMT in 2022-23. LPG coverage in the country has gone up from 62% in 2016 to almost 100% as on today and number of active LPG domestic connections has gone up from 14.52 Cr on 01.04.2014 to 31.5 Cr in July 2023. While at the national level, LPG coverage in the country is near saturation, there are few pockets/areas in the country where it is additionally required. To improve LPG usage amongst PMUY beneficiaries, Government and Oil Marketing Companies (OMCs) have organized LPG panchayats, social media campaigns, public events for the distribution of connections and public awareness campaigns etc. across the country. Government and the public sector OMCs are taking various further steps like, easing the process of taking a connection, and augmentation of LPG distribution network by increasing number of distributorships, bottling plants, LPG pipelines etc. Government is providing a targeted subsidy of Rs 200/14.2 Kg cylinder to PMUY households to make LPG more affordable to poor families. PMUY beneficiaries also have the flexibility to choose among 14.2 kg Single Bottle connection, 5 kg Double Bottle connection or 5 kg single bottle connection.

 

(c): India imports more than 60% of its domestic LPG consumption. Prices of LPG in the country are linked to its price in the international market. However, Government continues to modulate the effective price to consumer for Domestic LPG.

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