LPG cylinder price slashed by ₹200, double for PM Ujjwala scheme

Beneficiaries of the Ujjawala scheme will see the prices of their gas cylinder fall by ₹400

NEW DELHI | Updated: 29 August, 2023 6:00 pm IST
The subsidy was announced at a Cabinet briefing by Union minister, Anurag Thakur on Tuesday.

NEW DELHI: As a special gift for the auspicious occasions of Onam and Raksha Bandhan, the Modi government has granted approval for a reduction of ₹200 in the prices of 14 kg LPG gas cylinders intended for domestic use.

Additionally, the Pradhan Mantri Ujjwala Yojana, which is already offering a subsidy of ₹200 to its beneficiaries, is receiving an additional boost, the beneficiaries of the scheme will now experience a total reduction of ₹400 per cylinder, as a result of this price cut.

The subsidy was announced at a Cabinet briefing by Union minister, Anurag Thakur on Tuesday.

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“All domestic consumers of LPG cylinders get ₹200 subsidy per cylinder. Further, users under the PM Ujwala scheme will get this subsidy on top of existing subsidy,” Thakur told media persons.

This announcement comes ahead of Assembly polls in five states — Rajasthan, Chhattisgarh, Madhya Pradesh, Telangana and Mizoram — scheduled for later this year. The Narendra Modi government’s current five-year term at the Centre too comes to an end next year.

Further, the Cabinet approved 7.5 million new gas connections under the Ujjwala Scheme. Union minister Thakur also shared that the government’s commitment to providing these benefits will result in an expenditure of ₹7,680 crore.

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The state-owned oil marketing companies including Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL) will receive compensation through government subsidies for the reduced charges.

Currently, a domestic LPG cylinder in Delhi is priced at ₹1053, while in Mumbai, it costs ₹1052.50, in Chennai ₹1068.50, and in Kolkata ₹1079. Notably, these companies had raised the price of domestic LPG cylinders by ₹50 in July, following two price hikes in May.

“The reduction in cooking gas prices is aimed at providing direct relief to families and individuals, while also supporting the Government’s larger goal of ensuring affordable access to essential items,” said minister of petroleum and natural gas Hardeep Singh Puri.

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