LPG prices seen a sharp rise – Burning Issues – Free PDF

• Recently, LPG prices, which are revised on a monthly basis, went up yet again.
• Domestic prices of liquefied petroleum gas (LPG) are based on a formula — the import parity price (IPP), which is based on international LPG prices.
• The government resets the LPG price every month, the decision being influenced by international prices and how the rupee has behaved against the dollar in the immediately preceding weeks.
• The price increase will affect retail consumers who have given up the subsidy.
• The Centre said the price of an unsubsidized cylinder would increase from ₹714 to ₹858.50 in Delhi, for example, and that the subsidy offered would go up from ₹153.86 to ₹291.48.
• It looks like the most recent increase has been beyond its control and it is hence raising the subsidy levels to protect consumers, given that the economy is reeling from lack of consumer spending.
• With international crude prices on the downtrend, it is plausible the LPG prices too would see a slump.
• Aramco has lowered its propane price for February to $505 per metric tonne.

PaHaL – Direct Benefit Transfer Scheme for LPG

• PaHaL (Pratyaksha Hastaantarit Laabh) is the abbreviated alternate Hindi name for the Direct Benefit Transfer (DBT) Scheme existing in India for the direct cash transfer of subsidy for Liquefied Petroleum Gas (LPG) used in household cooking.
• Fortunately, many able and aware citizens are not in favour of subsidies and would rather pay the full price for the products and, thereby they also make a personal contribution towards nation-building. There is a need to spread this message.
• Accordingly, the Government has launched the ‘#GiveItUp’ campaign which is aimed at motivating LPG users who can afford to pay the market price for LPG to voluntarily surrender their LPG subsidy.
• This sucks away even more disposable income from those consumers who pay market rates for LPG. As a result, household budgets are bound to go up, especially for those not availing the subsidy.
• The increase in LPG price could spur headline inflation even further. As it is, the consumer price index inflation has seen a rise over the past few months.
• Pradhan Mantri Ujjwala Yojana (PMUY) aims to safeguard the health of women & children by providing them with a clean cooking fuel LPG.
• The scheme try to ensure women empowerment by issuing a connection in the name of women of the households.
• Under the scheme identification of the beneficiaries, i.e. BPL families will be done through Socio-Economic Caste Census Data.

Latest Burning Issues | Free PDF

Sharing is caring!