Saving on Subsidy passed on Cooking fuel

Each Pressure Cooker pays back its cost to the consumer in three months by way of saving fuel costs and makes Government richer by Rs. 5586.00

Our government pays RS 133 per LPG cylinder and RS. 22.90 per litre on kerosene as subsidy to the public sector oil companies. A huge amount from this subsidy can be saved by the government. The following table shows how the government can save subsidy on cooking fuel by encouraging the public to use pressure cookers.

Subsidy on 60 nos. of LPG cylinders assuming consumption of 1 cylinder per month for 5 years(assuming life of a pressure cooker for 5 Years) @ 133 per cylinder	Subsidy saving at 30 % fuel saving	Subsidy saving at 50 % fuel saving	Subsidy Saving at 70% fuel saving

RS 7980.00	RS 2394.00	RS 3990.00	RS 5586.00

Generally a Pressure Cooker lasts for 5 Years and its ex-factory price is below Rs. 300/- . Central excise @ 8% on Pressure Cooker comes to Rs. 24/- per pc if no MODVAT claimed (In case of small Industries) and becomes nominal or nil after claiming MODVAT( In case of Large industries). If our government abolishes Excise on pressure Cookers and encourage the public to use pressure cookers for fuel conservation even then our government will save up to RS 5586.00 per pressure cooker as subsidy saved on fuel savings. It is not all, the scrap value of pressure cooker after 5 years is estimated to Rs 200/- that will be sold for recycling for production of other products and the Government will further earn taxes and duties on recycled products. Thus the pressure cooker is not only a cooking pot but it acts as a recurring account that saves daily and becomes a large amount at last. The Pressure Cooker is beneficial to consumer as well as to government. Subsidy saving of Rs. 5586.00 is much greater than Rs. 24/- of excise. Why should the excise on pressure cookers be not abolished for the rapid growth of country.