Union Budget 2022-23: LPG subsidy pegged at Rs 4,000 crore
The FY23 budgetary estimate for direct benefit transfer (DBT) subsidy for liquefied petroleum gas (LPG) has been set at Rs 4,000 crore. Although the allocation is around 18% higher than the amount earmarked for FY22 (revised estimate), the figure is significantly lower than the Rs 23,666.6 crore spent on this account in FY21. The government had withdrawn the LPG subsidy since May 2020.
“The provision of fuel subsidy for sensitive petroleum products (DBTL on LPG sales) may be inadequate in case international prices of crude oil continue to rise and there is resistance from consumers to further price hikes,” Prashant Vasisht, vice president at ICRA said.
