The government is likely to end fuel subsidies next year

- When the government came to power, there was a subsidy of Rs 1.47 lakh crore

- The cost of fuel subsidy was Rs 1.64 lakh crore at one time which is now only Rs 12,231 crore

New Delhi: The central government may end fuel subsidy next year. At one time, the Congress-led UPA government spent Rs 1.5 lakh crore on fuel subsidies. In the financial year 2020-21, this share in the Narendra Modi-led NDA government has come down to Rs 12.51 crore.

The central government may end fuel subsidies in the next financial year. At one time, the Congress-led UPA government spent Rs 1.5 lakh crore on fuel subsidies. In the financial year 2020-21, the cost of fuel subsidy in the Narendra Modi-led government has come down to Rs 12,31 crore.

Oil companies had reported an under-recovery of Rs 1.5 lakh crore during 2016-17. After that, the UPA government had to pay Rs 1.08 lakh crore. Upstream oil companies had to pay Rs 50,000 crore and Rs 104 crore was borne by OMC.

In the financial year 2016-17, the fuel subsidy bill was Rs 1.5 lakh crore. In 2016-17, the Modi government had halved fuel subsidy to Rs 3,08 crore in the first year alone. Even with this subsidy, the government had paid only Rs 3,08 crore. While the rest of the subsidy was borne by the upstream oil companies.

After the government deregulated diesel prices, the under-recovery has halved to Rs 2,50 crore in 2015-16, Rs 4,400 crore in 2016-17, Rs 2,6 crore in 2016-17, Rs 4,915 crore in 2015-16 and Rs 5,912 crore in 2015-16. 8,31 crore.

For the weekend ending June in the current financial year, the government had paid only Rs 3 crore in LPG subsidy. This indicates that the fuel subsidy system may end quickly. While in 2015-20, the amount of PDS was Rs 1.2 crore, which was zero in 2020-21. This literally means that now about 200 million LPG consumers and kerosene consumers will have to buy at market prices.