Subsidy provided for kerosene and LPG (liquefied petroleum gas) for fiscal year 2019 is around Rs25,000 crore, which includes Rs3,200 crore towards cooking gas connections for poor households. Photo: Hemant Mishra/MintEXPECTATIONS: MODERATEDELIVERY: POORMEASURES:— Subsidy provided for kerosene and LPG (liquefied petroleum gas) for fiscal year 2019 is around Rs25,000 crore, which includes Rs3,200 crore towards cooking gas connections for poor households. IMPACT:— The subsidy provided for kerosene and LPG appears rather low when one considers this in the backdrop of rising crude oil prices. Higher crude oil prices are expected to result in Rs47,000 crore of under-recoveries in FY19, pointed out Motilal Oswal Securities Ltd in a recent report. Further, no announcements were made pertaining to reducing the cess on crude oil, which could have come as a disappointment.

Source: Mint February 01, 2018 12:00 UTC