Currently, LPG subsidies are computed using the Saudi Contract Price (CP), which serves as the benchmark for supplies from West Asia.
Despite the additional spending on account of subsidies, the Centre is confident of meeting the fiscal deficit target of 5.9 percent of GDP.
The game-changer programme of transferring cooking gas (LPG) subsidy directly to consumers was today extended to Mandi district in Himachal Pradesh, completing the first phase of the scheme that has crossed 3 million transactions since its launch two months ago.
18 districts in the country will get Rs 435 in their bank accounts directly as a part of their LPG subsidy.
The market has been on a high this week with the Nifty closing at its highest level in 2013 but just short of the psychological important 6100-mark. The Sensex too matched the Nifty move, ending the day above 20,000 level.
The Cabinet on Thursday cleared direct benefit transfer on LPG subsidy. Under a pilot project for LPG subsidy transfer, 20 districts in the country will be covered by May 15.
At 14.30 hrs IST, the Sensex was up 179.22 points or 0.90% at 19996.85, and the Nifty up 46.55 points or 0.78% at 6048.40.