Omcs messages on income tax status confuse lpg consumers

State-run oil marketing companies have sent messages to liquefied petroleum gas consumers regarding their income tax records, aiming to discontinue subsidies for those exceeding income limits.

The messages inform consumers that their gross taxable income or that of a linked family member exceeds ₹10 lakh based on available records. Recipients are given seven days to dispute the information by calling a toll-free number or registering a grievance on the oil marketing company portal, after which the subsidy may be discontinued.

LPG consumers outside the income tax bracket who have linked their Aadhaar numbers to bank accounts receive a subsidy of ₹24.50 per cylinder delivered. A resident of Velachery expressed irritation over the messages, noting the small subsidy amount and concerns about privacy of personal income tax records.

Consumer activist T. Sadagopan described the use of income tax records as an invasion of privacy and suggested ending the subsidy altogether. An LPG distributor said the messages have created confusion among consumers following recent KYC submissions, while an oil industry source attributed the drive to a directive from the Ministry of Petroleum and Natural Gas.

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Illustration of an LPG gas cylinder in Delhi with updated price after hike
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Domestic LPG cylinder price rises by 29 rupees in Delhi

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The price of domestic LPG cylinders has been raised by ₹29 per 14.2 kg cylinder, effective June 7. In Delhi the new price is ₹942.

Despite the government doubling daily allocations of 5-kg LPG cylinders to stabilize supplies disrupted by the West Asia conflict, high upfront costs, low awareness, and inconsistent availability are keeping them out of reach for migrant workers and students. Of the 1,368 cylinders set aside daily, only about 50-55% are being purchased from Oil Marketing Companies.

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The Centre has reduced the number of subsidised LPG refills under the Pradhan Mantri Ujjwala Yojana from nine to four per year amid global supply pressures linked to the West Asia conflict.

The Brazilian government announced on Monday (6) extra subsidies for diesel and cooking gas, plus zeroing PIS/Cofins on biodiesel and aviation kerosene. The measures aim to curb the war in Iran's impact on fuel prices. The total estimated cost is R$ 31 billion, offset by an oil export tax.

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Congress president Mallikarjun Kharge and other opposition parties have criticised recent fuel price increases, accusing the Narendra Modi government of failing to shield citizens from rising costs.

The U.S.-Israel war with Iran has shut down the Strait of Hormuz, triggering a severe liquefied petroleum gas shortage that affects cooking for millions in Asia and Africa. In India, households like driver Subhash Kapoor's are turning to black markets amid skyrocketing prices. Restaurants and institutions are altering menus or closing as supplies dwindle.

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Kenya's government plans to use a Sh17 billion subsidy to protect citizens from fuel price increases over the next 60 days if Middle East conflicts extend beyond May and June. Finance Minister John Mbadi disclosed these plans to MPs, including potential VAT adjustments.

 

 

 

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