9 Mar 2014

Aadhar Card and LPG Subsidy

Aadhar Card - Aam Aadmi Ka Adhikar. Aadhar card was released by the government as a unique identification card. The government has opened various centers so that one can apply for an Aadhar card. Till recently, it was also said that LPG (Liquefied Petroleum Gas) subsidy would be given to people who link their Aadhar card to their bank account and their LPG provider.

Here in India, LPG or a gas cylinder is used as the cooking medium in most households. The subsidized rate of a gas cylinder in Bangalore is Rs.432 approximately. The market price of the same cylinder is Rs.1162. The government is providing us a very resonable price for these cylinders. However, there is a parallel economy running which sells LPG in the black market at high prices. This cheats the customer and the government. To reduce this, the government wanted to eliminate middlemen and wanted to give direct subsidy to people. However, not a very big chunk of population has an Aadhar card and few have linked it to their bank accounts. There is a lot of confusion floating around regarding what happens whether your Aadhar has been linked or not.

If you linked your Aadhar card to your bank account and provided details to LPG provider:

1. You will be paying full market price (Rs.1162) when the cylinder is delivered at your door step.
2. The subsidy will come to your bank account a little before or after the cylinder is delivered. The amount credited to your account will be Rs.730. So the price being paid for the cylinder is Rs.1162-Rs. 730 = Rs.432.
3. Some people are getting a credit of Rs.435 in their bank accounts when the first cylinder is delivered after the linkage. If this is the case, please be patient. The rest of the subsidy will come. The credit of Rs.435 will only happen in terms of the first cylinder and the subsidy for the rest of the cylinders will be smooth.

If you have not linked your Aadhar card to your bank account

      - you will be paying the subsidized price of Rs.432.

Irrespective of whether you have or have not linked your Aadhar card, the out of pocket expense will be the same. In Bangalore, the out of pocket expense is Rs.432. 

The term being used often is DBTL - Direct Benefit Transfer for LPG. The latest news on this matter is that DBTL is currently on hold. If you do not have an Aadhar or have not linked your Aadhar card, you will get the gas cylinder at the subsidized price.

A plea to the readers - let us help the government eliminated corruption and the black market. Please link your Aadhar cards to make this a better place to live.


  1. Let the price of cooking gas in India be reduced to the price according to the international price of oil and natural gas, which is below the present subsidy levels, let the government do this immediately else let it be removed. Let the bank account and aadhar card be discarded completely, as there is no subsidy component from the government based on international prices of oil and natural gas. Let this government which does not provide any subsidy according to international prices of oil and natural gas stop harassing the people. Let any government that continues anti-people like this activity be removed. Let the LPG subsidy not haunt consumers anymore, as there is no more subsidy according to the international price of oil and natural gas.

  2. Even in the form for linking bank account without aadhar, they take an undertaking that the consumer will obtain and furnish aadhar number. This is a dubious means to compel enrolment of aadhar, the only use of which is to give data to foreign li9nkled companies. Why is the government not coming up with UID totally free from participation of foreign linked and other private companies. We are constrained to question the bonafides of those involved.