One million consumers in India give up their LPG subsidy

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Through a sustained audio-visual campaign run to save money for development, three public sector oil companies have managed to convince over one million consumers in India to surrender their LPG subsidy.

Indian Oil (Indane), Bharat Petroleum (Bharat Gas) and Hindustan Petroleum (HP Gas) incur a total subsidy cost of Rs 40,000 crore on providing 12 LPG cylinders per year to around 15.3 crore consumers.

When a consumer calls for a refill, a campaign that reaches out through interactive voice response (IVRS) as well as visual media, convinces consumers to bring down the subsidy component.

Among states, 2.09 lakh people have given up their subsidy in Uttar Pradesh while Maharashtra is ranked second in this regard.

“Uttar Pradesh which has the maximum population among all states also has several lakh LPG consumers. Most consumers who have given up their LPG subsidy in Uttar Pradesh are from industrialized areas like Noida,” a senior IOL official said.

“The total saving for the Centre due to 1 million consumers giving up is likely to be Rs 140 crore. In the coming months, we expect the number to go up substantially,” said the official.

Currently, the subsidy provided to consumers translates to money out of the exchequer. The same could instead be used for development purposes, says the oil ministry on its website.

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