Household consumers would be linked up to Aadhar Card from 15th May 2013. They have to pay Rs. 25 more for each cylinder due to cancellation of State Govt. subsidy on LPG cylinders. When Central Govt. had increased the price of LPG cylinder by Rs. 50, the then CM of AP Dr. Y.S. Rajasekhara Reddy had announced that State Govt. would bear the extra cost.
AP was the only State which is bearing this extra expenditure which cost Rs. 550 crore per year. Central Govt. had reduced the price of the cylinder by Rs. 25 in January 2009 but State Govt. did not transfer this benefit to consumers. Instead of this, it reduced the amount of subsidy from Rs. 550 crore to Rs. 225 crore. Due to this the burden of State Govt’s subsidy got reduced to Rs. 225 crore per year.
At present non-subsidized LPG cylinder costs Rs. 900 each. Oil marketing companies would transfer the subsidy amounting to Rs. 463 directly to the bank account of the consumer who holds Aadhar Card. It means that a consumer has to buy LPG cylinder for Rs. 437.50. It is because there is no provision to transfer State Govt’s subsidy directly to consumer’s account.
Oil companies would transfer the amount of subsidy directly to consumer’s bank account. It is yet to be seen what kind of system does the State Govt. adopt to transfer the amount of subsidy it provides to the consumers.
——Siasat News