Why should the Consumers of LPG Cooking Gas in India ‘Give Up’ the ‘Gas Subsidy’ ?

Why should the Consumers of LPG Cooking Gas in India ‘Give Up’ the ‘Gas Subsidy’ ?
‘Subsidy on LPG Cooking Gas’ given by the Union Government of India:

In India, the following 3 Petroleum Companies are supplying LPG Cooking Gas to the consumers, apart from Petrol and Diesel:

  • Indian Oil Corporation,
  • Hindustan Petroleum and
  • Bharat Petroleum.

The actual cost of LPG cooking gas in cylinder of gross weight of 14.2 Kgs is higher than the price paid by the consumers.

The ‘LPG Cooking Gas’ has been provided to the consumers  at a subsidized price,  which is almost half of the actual cost / price of the same.

Until very recently, many of the consumers of cooking gas have not been aware of the fact that they are getting a ‘Gas Subsidy’ as and when they book for and purchase a refill of the cooking gas.

Because, the benefit of the ‘Gas Subsidy’ had been given by the Union Government of India indirectly, by paying to the cooking gas company, and the consumers had been paying only the ‘subsidized price’ of the same.

The difference in the actual ‘Market Price’ and the ‘Subsidized Price’ of the LPG Cooking Gas has been / is borne by the Union Government of India, as the ‘Gas Subsidy’.

Direct Benefit Transfer /DBT Scheme of ‘Cooking Gas Subidy’:

The Union Government of India wanted to give the benefit of the ‘Gas Subsidy’ directly to the consumers, for various reasons, including that the consumers must realize that they are given the benefit of subsidy of cooking gas, whenever they receive a refill of LPG cooking gas from the gas companies.

So, the system of ‘Direct Benefit Transfer’/ DBT system has been introduced for the supply of LPG cooking gas also, along with DBT for other benefits given to the people.

According to the ‘Direct Benefit Transfer /DBT System’ for getting the LPG gas subsidy, the consumers have to link their Bank Accounts with the related LPG gas connection.

On joining the ‘DBT scheme’ successfully, the registered bank account of the consumer would be credited with two months subsidy in advance, say Rs 568/- and on further procurement of refills the actual subsidy amount will be credited after the consumer purchases the gas refill on payment of the ‘Market Price’ of the cooking gas.

The subsidy of the LPG cooking gas will be credited to the ‘Bank Accounts’ registered with the gas company  for the purpose.

The amount of subsidy is received by the consumers directly, which can be felt physically in their bank accounts.

‘Give Up ‘Gas Subsidy’ to Help the Poor Indians Below the Poverty Line /BPL:

Surprisingly, after allowing the consumers to get the gas subsidy after a long and tedious or easy procedure (according to the Government and Gas companies), the Union Government of India has been advising the consumers to ‘GIVE UP’ the ‘gas subsidy.

The Union Government of India has been advising the LPG gas consumers through the cooking gas companies to give up the subsidy amount to enable the Government to utilize the funds for the benefit of the people below the poverty line /BPL.

Also, the advise, request and prompting of  a noble act of ‘Giving Up’ of ‘Gas Subsidy’ has been spread through Television Ads and All India and other FM Radios Ads.

Though, getting the gas subsidy had been and has been a step by step procedure involving approaching the gas company and / or the bank with form/s to be filled in with photocopies of original gas connection receipt, Address Proof and Personal Id Proof etc., it is so much easy to opt for ‘giving up’ the gas subsidy, in a one click or to be precise a ‘0’/zero click, while trying to book for refill online. 

Also the willing consumers may visit the website for the purpose or go directly to the gas company dealer and opt out of the ‘gas subsidy’.

There are many cases of complaint that they had given their consent for ‘giving up’ the gas subsidy, even without their consent or knowledge, by pressing ‘0’/’zero’ wrongly.

The wrong option recorded for ‘opting out’ of the gas subsidy can be reversed.

However, the reversal of wrong/unintentional ‘giving up’ of gas subsidy are taking some time for the gas companies

According to the LPG cooking Gas companies in India, about 3.16 Lakhs of LPG cooking gas consumers have given up the subsidy, in response to the Union Government of India / PM Narendra Modi’s request to do so.

The following are the ‘District wise’ number of LPG cooking gas consumers who have given up the gas subsidy in the State of Tamilnadu:-

Name of the District / Number of LPG cooking gas consumers Given up Subsidy (2 06 870):

  • Chennai / 60 000,
  • Tiruvallur  / 21 000,
  • Coimbatore / 21 000,
  • Cuddalore / 20 000,
  • Tiruchirappalli / 17 500,
  • Salem / 16 000,
  • Tiruppur / 16 000,
  • Kanchipuram / 13 300,
  • Vellore / 9 600,
  • Tiruvannamalai / 7 500,
  • Ramanathapuram / 3 500 and
  • Tiruvarur / 1 470
  • Other Districts / 1.1 Lakhs

The LPG cooking gas companies have been saying that the number of consumers opting to give up the subsidy is increasing.

Awareness created on ‘Give Up Gas Subsidy’ by the Government of India:

The Honorable Prime Minister of India, Sri.Narendra Modi has been repeatedly advising the Indian Consumers to ‘Give Up’ their gas subsidy for the benefit of the people ‘Below the Poverty Line / BPL.

Also, there have been reports of celebrities such as Cinema Actors like the ‘Big B’ of Bollywood Amitabh Bachchan, giving up the gas subsidy for the consumers to follow.

People of India are aware of the fact that,  some of the cinema actors in India whose salary per movie has been  in many ‘C(rore)’s and not in ‘L(akh)’s, as it had been long ago.

The celebrity actors act as the ‘Ambassadors’, perhaps free of cost, for the Government of India’s  noble cause / idea of ‘giving up’ the gas subsidy.

Due to lapse of time people might have forgotten  that many celebrity actors and actresses had promoted the ‘2 Minutes’ Noodles, which was reported to be injurious to health and how they reacted to the charges for having promoted a wrong product etc.

Actually, the actors in India may not know the actual cost of LPG cooking gas or the gas subsidy they have given up.

It is similar to an actual incident reported,  more than 20 years back, by a ‘Bank Marketing Manager’ who  approached the Telugu Super Star  Akkineni Nageshwara Rao / ANR to receive their Bank’s Credit Card and pose for the ‘Advertisement’ of the Credit Card.

The actor ANR had reportedly told the bank officer,  that he never carried a purse and his financial dealings were all looked after by his Personal Assistants and Family members and if he posed for the Credit Card it would not be realistic.

The actors and celebrities in India may not know the actual cost, subsidized cost and ‘gas subsidy’ etc., of cooking gas, in view of their status etc. In fact they may not carry a purse, cash, Debit Cards, Credit Cards etc., when everything would be taken care of by their Personal Assistants / Secretaries and by the members of their families.

Reactions of the Indian Consumers of the ‘Giving Up’ the ‘Cooking  Gas Subsidy’:

There are multiple reactions of the consumers in the matter of giving up the gas subsidy for the benefit of people in the below poverty level / BPL.

The Union Government of India, intended to provide 50% of the total cost of the LPG cooking gas as subsidy to the consumers, whereas, the subsidy portion would be shared equally by the Government and the Gas companies. However, the actual amount of subsidy amount given to the consumer is less than 50% of the cost.

The subsidy given up by the cooking gas consumers would be deducted from the amount payable by the Union Government of India to the consumers and it is difficult to assume that the amount would benefit people in the below poverty line.

According to the consumers, nobody can give a guarantee that the given up subsidy would be used for providing gas to the people in the BPL level.

Also, there are many ‘Freebies’ for them, including ‘Free Gas Stove’ etc.to take care of such people.

It is indeed a good cause of giving up ‘LPG cooking Gas subsidy’ by the affordable consumers in India, for the so called benefit to the people in the BPL.

The people in the BPL can be looked after better by ‘specific schemes’ of the Union Government of India and the State Governments in India.

Some consumers feel that the ‘Members of Parliament’ / MPs and ‘Members of the Legislative Assemblies’  / MLAs,  and Government Officials should give up their gas subsidy and create awareness of the ‘noble act’.

The fact is that  they  cannot be compared with ordinary consumers in the matter of cooking gas, apart from other matters, as they would come under as’ Special Category’ of consumers /citizens of India, as long as they continue as ‘Law Makers’. The benefits received by them, or their  cost to the Government of India is an exclusively topic of interest.  Nowadays, due to the impact of ‘Internet’ and the social media, people are aware of the same.

It is notable that as the ‘freebies’ given by many State Governments are dependent on the income from the sale of liquors, apart from the revenues by way of Direct and Indirect Taxes and other Duties etc.

It is notable that India is not in a position to fulfill the motto / promise given in the Constitution of India, (Under Article 47) which envisages that the States in India shall endeavor to bring about ‘Prohibition’ of ‘Intoxicating  Liquors’ which are injurious to health, and curtail the use of liquors /alcohol in India, except for ‘Medicinal purposes.

Recently, the Union Government of India is taking steps to cut the ‘Gas Subsidy’ to the consumers having Gross Annual Income of Rs 10 Lakhs and above.

Under the above net / filter, only the so called ‘Techies’ / IT professional would be trapped, whereas, many businessmen and others earning more than Rs 10 Lakhs per annum would not be covered under the same.

The fact that, the so called cream layer of the society earning Rs 10 Lakhs and above per annum, may not have ‘Take Home Pay’ of even 40 % of their ‘gross income’, in view of their ‘EMI’s towards ‘Personal Loans’ and ‘Housing Loans’ and even Outside Loans, such as Loan against Jewels etc.

As it is said, in such nets, small fishes would swim across the gap and the very big fishes would go out cutting the net and only the medium sized fish would be caught.

In the opinion of many consumers in India, the Union Government of India may completely stop the cooking gas subsidy, instead of advising for ‘giving up’, after getting the same with much efforts.

All the subsidies given by the Union Government of India and all the  ‘Freebies’ given by the State Governments in India must be stopped,  because anything given ‘Free’ of cost, whether subsidy or ‘Freebies’, will be eagerly received by both the ‘Haves’ and ‘Have – Nots’, which is but a natural human tendency.

And good and viable schemes may be framed by the Governments in India to help people who are really in the Below Poverty Line / BPL, enabling the Direct Benefit Transfer /DBT to them.

In summary, it appears that the Union Government of India will sooner or later completely stop the ‘Cooking Gas Subsidy’ to all.

As it is only a ‘0’/’Zero’ click away, be proud to ‘GIVE UP’ the ‘Cooking Gas Subsidy’, before it is automatically taken out from you, or Wait for some more time and enjoy the fruits of the gas subsidy and be ‘SELFISH’ in the view point of the Government of India.

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