LPG subsidy directly in bank accounts from June 1 in 18 districts

May 31, 2013

The government is ready to experiment the Direct Benefit Transfer programme in the form of LPG subsidy. 18 districts have been selected to test this scheme in which the government will transfer LPG subsidy directly into the Aadhaar linked banked accounts of the beneficiaries. From June 1, 2013 cooking gas consumers in these districts will get Rs 435 in their bank accounts when they book an LPG cylinder.
Initially, the scheme was planned for 20 districts but the launch in Mysore in Karnataka and Mandi in Himachal Pradesh has been postponed by a month due to assembly and Parliamentary bypolls.
What will be the impact of this scheme?
After the launch of the scheme, consumers in 18 districts such as North Goa and Pondicherry will get Rs 435 in their bank accounts every time they book for an LPG refill. These consumers then will have to buy cooking gas at market price which is double the Rs 410.50 rate for a 14.2-kg bottle in Delhi.
For the government, this plan is likely to cut its fuel subsidy and expected to save Rs 8,000 to 10,000 crore in LPG subsidy annually after the scheme is rolled out all over the country.

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