Year and Scheme-wise amount of PDS Kerosene and Domestic LPG Subsidy

The data shows the year and scheme-wise total amount of subsidy for the Public Distribution System of Kerosene and Domestic LPG Note: 1. Both the subsidy schemes (Subsidy Scheme 2002 and Freight Subsidy Scheme 2002) have not been extended beyond 2014-15 by the Ministry of Petroleum and Natural Gas and were discontinued w.e.f. 1st April 2015. 2. Subsidy on PDS Kerosene and Domestic LPG effective 1.4.2002 is met from the fiscal budget and has been fixed on a specified flat rate basis for each Depot/Bottling Plant based on the difference between the cost price and the issue price per selling unit. The scheme has provided that both the cost price and issue price would be revised by the companies based on the changes in corresponding prices in the international market. However, this mechanism could not be implemented by the companies on account of sharp rise in LPG prices in international markets since 2004 and consequent Government direction to modulate price increases 3. The average subsidy during 2002-03 on PDS Kerosene was Rs.2.45 per litre & on domestic LPG at Rs.67.75 per cylinder. The flat rate subsidy was reduced by 1/3rd each year during 2003-04 and 2004-05. Since then the subsidy rate for Domestic LPG and PDS Kerosene has been maintained at the 2004-05 level (i.e. 1/3rd of 2002-03 level), i.e. 82 paise per litre for PDS kerosene and Rs.22.58/cylinder for domestic LPG.