Hyderabad: The Centre government's decision to slash the price of domestic LPG cylinder by Rs 100 has come as a big relief to the state government, which is providing subsidised cylinders for Rs 500 to 40 lakh consumers.
At present, the price of a domestic cylinder is Rs 955 in Telangana state. As the state government promised to provide it for Rs 500, it was required to offer a subsidy of Rs 455 on each cylinder.
It is estimated that each household utilises six cylinders per year on an average. It amounts to the state government bearing a subsidy burden of `2,730 per year on each household. If 40 lakh households are taken into account, the aggregate subsidy that the state government would have to bear will be Rs 1,092 crore per year.
With the Centre slashing the LPG cylinder price by Rs 100, the state government would have to bear a subsidy of `355 per cylinder. With this, the state government's subsidy burden will reduce to Rs 852 crore per year. This will result in savings of Rs 240 crore per year.
The newly-formed Congress government launched the Maha Lakshmi guarantee scheme to provide LPG cylinders for Rs 500 promised during Assembly polls only a week ago on February 27. The government is struggling to mobilise financial resources to fund Six Guarantees promised in Assembly polls.
