Unlike kerosene, which is sold at a subsidised price, cooking gas is sold at market price and the subsidy amount is credited to consumers’ bank accounts by the oil marketing companies. In 2018-19, the total subsidy burden on account of kerosene stood at around Rs 6,000 crore, while it was around Rs 37,200 crore for LPG compared with Rs 28,140 crore in the previous fiscal. The rise in the subsidy burden was primarily on account of higher prices of crude oil as well as the rise in the penetration of subsidised LPG connections in the country. In the interim budget for 2019-20, the government had hiked the petroleum subsidy by about 51 per cent to Rs 37,458 crore over the revised estimate of Rs 24,833 crore. For 2018-19, the revised estimate of petroleum subsidy stood at Rs 24,833 crore against the budgeted estimate of Rs 24,933 crore.

Source: The Telegraph May 15, 2019 19:18 UTC