Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
2013
Scope: 
National
Document Type: 
Programme, Other
Economic Sector: 
Energy
Energy Types: 
Oil, Gas
Issued by: 
Ministry of Petroleum and Natural Gas
Overall Summary: 
The Pratyaksh Hanstantrit Labh (PAHAL) Scheme aims to curb the diversion of the subsidized LPG. Under the scheme, Consumers will pay the market price for the domestic cylinder and the subsidy will be transferred directly to their bank account. This removes the incentive to divert the domestic LPG cylinders, which moved in the supply chain at almost half of their real market price.
Pricing
Fossil fuel subsidies: 
3.2 Benefits of PAHAL (DBTL) Scheme A. Government of India i. Launch of PAHAL (DBTL) will reduce subsidy burden due to: a) Elimination of supply chain leakages and unauthorized usage. b) Allow consumers to opt out of subsidy, and c) Reduction in multiple connections by way of Aadhaar based De-duplication. ii. Improvement in public service delivery B. LPG Consumers i. LPG Consumers get LPG subsidy in cash directly in their bank account automatically. ii. With removal of incentive for diversion, the entitlement will be protected iii. Improved availability of new LPG connections in the market. iv. Reduction in back-log due to reduced diversion C. Oil Marketing Companies (OMC) i. Reduction in administrative overheads due to: a) Lesser policing b) Reduction in number of grievances related to unauthorized usage, diversion and delayed deliveries. c) Public auditing of Subsidy ii. Allow focus on consumer relationship management iii. Improved quality of consumer database which can be leveraged for better data mining leading to improved services. iv. Removal of multiple connections / fake & ghost LPG consumers. v. Reduction in product shortage and better management of imports.