However, the risk of diversion of non-subsidised domestic cylinders, which attract lower taxes, has also risen, it said. The CAG said the fall in the sale of subsidised LPG contributed only Rs 1,763 crore, while the rest came from cheaper energy prices. Cooking gas subsidy fell by Rs 23,316 crore in the first three quarters of 2015-16 compared to the same period year ago. The oil ministry had estimated a saving of Rs 9,211 crore on account of the PAHAL (Pratyaksh Hanstantrit Labh, or Direct Benefit Transfer of LPG) scheme for direct transfer of subsidy to eligible customers. The CAG observed that sale of commercial LPG has risen sharply after the government initiative, indicating a curb in diversion of subsidised cooking gas to commercial establishment.

Source: Economic Times August 12, 2016 21:56 UTC