News Karnataka

Car owners to lose LPG subsidy soon?!

Car owners to lose LPG subsidy soon?!

Shrivibhavana   ¦    Dec 07, 2017 02:28:06 PM (IST)

Car owners to lose LPG subsidy soon?!-1

Bengaluru: If you have a car, be ready to pay more for LPG! Yes, the Union Government is seriously considering a subsidy cut-off for families who own a car. According to government sources, under the direct subsidy transfer to the account of beneficiaries scheme, around 3.60 crore fake connections have been found and they have been disconnected already, which has saved the government around Rs 30,000 crores. Now, the government is considering cuting off LPG subsidies of car owners.

Information collected from RTO: The government is already collecting information from the Regional Transport Offices, in a few districts, regarding the registration of cars. As owners of two-three cars exploit the subsidy benefit, this step of the government would save a huge amount for the treasury.

According to a report, as these people are capable of paying for LPG without subsidy, it has been decided to keep them out of the subsidy scheme. Just a week ago, the government had cut LPG subsidies for those who have an annual income exceeding Rs10 lakh.

There are more than 25.11 crore LPG customers in the country. As a result of the raise in international crude oil prices, it is expected that the LPG subsidy amount would reach up to Rs15,000 crore by the year-end.

According to sources, this new system is expected to be implemented in a phased manner. "It will be implemented in any of the states first and based on the feedback received, it will be implemented across the country," said an officer privy to the developments.