6.73 lakh LPG consumers have given up subsidy

‘Each month, an average of 10,200 opt out of subsidy’

March 24, 2017 01:01 am | Updated 07:39 am IST - CHENNAI

Tamil Nadu has 1.01 crore active LPG consumers. File Photo

Tamil Nadu has 1.01 crore active LPG consumers. File Photo

Ever since the Central government announced the ‘Give It Up’ scheme, under which consumers gave up subsidy on refills, a total of 6,73,347 families in the State have opted out. In July 2015, the number of persons who gave up subsidy on cylinder refills was 1,01,354 in the State.

“Each month, an average of around 10,200 consumers of the three oil majors are giving up the subsidy. Through our sustained campaign, people use the option on the IVRS mode and also go online to opt out of getting subsidy,” explained an oil industry source. Tamil Nadu has 1.01 crore active LPG consumers.

However, there are consumers who contact the respective oil companies to reverse their decision. “Some say they have pressed the wrong entry on the IVRS mode and request us and we do oblige them. There are also a small section of consumers who have not linked their bank accounts with Aadhaar numbers and the 17-digit LPG ID. They also do not get subsidy,” the official explained.

This month, the cost of a non-subsidised refill went up by ₹86 from last month when it was ₹661 in Chennai. The present rate of a subsidised refill is ₹422.43 and that of non-subsidised ₹746.50 in the city. Last March, the price of a subsidised refill was ₹406.63 and non-subsidised was ₹525.50. Unlike petrol and diesel prices that are revised twice a month on the 1st and 15th depending global crude oil prices, LPG prices are revised each month.

Consumer activist T. Sadagopan said though there was some information that LPG prices would go down after winter when the demand reduces, it is not the case now.

“Consumers who have given up their subsidy are worried whether the the rates will further shoot up. The difference that a consumer has to now bear is ₹324.07, which is quite steep. If a consumer uses one cylinder a month, at this rate at the end of the year, he would have to shell out ₹ 2,900 additionally. This is a steep burden on any family budget. The government is aiming to stop subsidy to consumers one fine morning,” he said.

The text messages sent by oil companies after booking is done does not contain the amount that has to be paid by the consumer.

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