India's Oil Marketing Companies Target Tax Data to Curb LPG Subsidy Leakages Amid Rising Energy Prices
Now OMCs referring to DBTL LPG beneficiaries’ Income Tax data to plug leakages amid West Asia war
Mint
Image: Mint
In response to rising energy prices and to prevent subsidy leakages, India's oil marketing companies (OMCs) are using income tax data to identify ineligible beneficiaries of the Direct Benefit Transfer for LPG (DBTL) scheme. The move comes as OMCs face significant losses, with potential fuel price hikes on the horizon.
- 01OMCs are using income tax data to identify beneficiaries of the DBTL scheme with incomes above ₹10 lakh (approximately $12,000 USD).
- 02The subsidy amount per LPG cylinder is around ₹30, and the DBTL scheme has 333 million beneficiaries.
- 03India's subsidy outgo under the DBTL scheme has significantly decreased, from ₹35,681 crore (roughly $4.3 billion USD) in FY21 to ₹375.28 crore (around $45 million USD) in FY25.
- 04The West Asia conflict has impacted LPG imports, prompting the government to seek alternative sources.
- 05OMCs are incurring monthly losses of about ₹30,000 crore (approximately $3.6 billion USD) due to stagnant fuel prices.
Advertisement
In-Article Ad
India's oil marketing companies (OMCs) are leveraging income tax data to identify and remove ineligible beneficiaries from the Direct Benefit Transfer for LPG (DBTL) scheme, which is designed for households with annual incomes below ₹10 lakh (approximately $12,000 USD). The initiative comes as OMCs, including Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd, face rising energy prices and significant losses from fuel sales. Reports indicate that these companies are losing around ₹30,000 crore (approximately $3.6 billion USD) monthly due to stagnant LPG, petrol, and diesel prices. The DBTL subsidy, which is about ₹30 per cylinder, has seen a decrease in government expenditure, dropping from ₹35,681 crore (roughly $4.3 billion USD) in FY21 to ₹375.28 crore (around $45 million USD) in FY25. The recent conflict in West Asia has also strained LPG supplies, leading the government to diversify its import sources. This crackdown on subsidies aims to ensure that only eligible beneficiaries receive support, as the government encourages a shift towards alternative energy sources.
Advertisement
In-Article Ad
The crackdown on ineligible beneficiaries is expected to tighten the subsidy distribution, ensuring that only those who genuinely need support receive it. This could lead to increased costs for higher-income households who may lose their subsidy.
Advertisement
In-Article Ad
Reader Poll
Do you support the use of income tax data to determine eligibility for LPG subsidies?
Connecting to poll...
More about Indian Oil Corporation Ltd
Read the original article
Visit the source for the complete story.