(a) whether the Government proposes to launch a fool-proof distribution
system to check the blackmarketing of LPG and kerosene oil;
(b) if so, the details thereof;
(c) the quantum of subsidy being provided per LPG cylinder and per litre
of kerosene oil respectively at present;
(d) the quantum of subsidy per year being provided on retail distribution
of LPG and kerosene oil ; and
(e) the steps taken by the Government to check misappropriation
of the subsidies ?
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI R. P. N. SINGH)
(a) & (b): The possibility of blackmarketing/ diversion of subsidized domestic
LPG cylinders and PDS kerosene by some unscrupulous elements cannot be ruled out
due to the wide gap between the retail price of LPG for domestic use and the market
price for commercial LPG and also PDS kerosene and petrol/diesel/kerosene as for
non-PDS usage.
In order to avoid the leakages in the system, Government is working out
modalities for cash transfer of subsidies using the AADHAR platform operated by
the Unique Identification Authority of India.
In addition, State Governments have been requested to install Global
Positioning System (GPS) based Vehicle Tracking System (VTS) on tankers
transporting Public Distribution System (PDS) kerosene. Public Sector Oil
Marketing Companies (OMCs) have also devising a public portal where information
on PDS SKO such as dispatch time, quantity, and vehicle details would be available
to general public.
(c) & (d): The Government is providing subsidy of Rs. 0.82 per litre on
PDS kerosene and Rs. 22.58 per cylinder on domestic LPG from the fiscal budget
under the “PDS Kerosene and Domestic LPG Subsidy Scheme, 2002†to the OMCs.
The Government has paid subsidy of Rs. 2,904 crore under the said Scheme to the
OMCs during the year 2010-11.
In addition to the above fiscal subsidy, the OMCs have incurred under-
recoveries of Rs. 78,910 crore on the sale of Petrol (upto 25.06.2010), Diesel,
PDS Kerosene and domestic LPG during the year 2010-11. Under the burden sharing
mechanism being followed, these under-recoveries are shared by the Government
and the Public Sector Oil Companies during the year 2010-11 in the following manner :-
(Rs. crore)
Total under-recovery on sensitive 78,190 Petroleum products # Burden Sharing through: Cash assistant from Government 41,000 Discount by Upstream Oil Companies 30,297 Under-recoveries absorbed by OMCs 6,893