Question : Criteria fixed for LPG Subsidy

(a) the criteria fixed by the Government to avail LPG subsidy by consumers;
(b) whether the Indian Oil Corporation (IOC)/OMCs have stopped giving LPG subsidy to
consumers and if so, the details thereof and the reasons therefor;
(c) whether the Government has taken any action against IOC and other oil marketing companies
and if so, the details thereof;
(d) the main reasons for irregularities in transfer of LPG subsidy along with the measures
taken by the Government to address the said issue; and
(e) the corrective steps taken by the Government for release of the subsidy to LPG consumers
in a time-bound manner?

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI RAMESWAR TELI)
(a) to (e): The prices of petroleum products in the country are linked to the price of
respective products in the international market. However, the Government continues to modulate
the effective price to consumer for Subsidized Domestic LPG. The subsidy on the product
increases/ decreases with the increase/ decrease in the product price in international market and
decision of Government on subsidy. The whole cycle of settlement of subsidy in bank account of
customer normally takes around 2-3 working days. The subsidy is paid to consumers by Oil
Marketing Companies (OMCs) and the same is reimbursed by Government to OMCs on monthly
basis.
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