Modi govt slashes LPG cylinder prices by Rs 200

TIn a move that will bring respite to households across the nation, the Government on 29 August, 2023 has announced a substantial reduction in the price of cooking gas. According to a government statement, the decision will be effective from August 30, 2023 and the price of a 14.2 Kg LPG cylinder will be reduced by Rs 200 in all markets across the country,

In Delhi for instance, the decision will bring down the cost of a 14.2 Kg cylinder from the existing Rs 1103 per cylinder to a more affordable Rs 903 per cylinder. This across-the-board reduction is in addition to the existing targeted subsidy of Rs 200 per cylinder to PMUY (Ujjwala) households, which will continue.

For PMUY households, therefore, the effective price in Delhi after this reduction will be Rs 703 per cylinder. To clear pending PMUY applications and to provide deposit-free LPG connections to all eligible households, the government will shortly start distribution of PMUY connections to 75 lakh women from poor households who do not have an LPG connection. This will increase the total number of beneficiaries under PMUY from 9.6 crore to 10.35 crore, the government statement said
Announcing the decision, Information and Broadcasting Minister Shri Anurag Thakur said the move is aimed at providing relief to households. Also, the government will provide an additional 75 lakh Ujjwala connections, which will take the total PMUY beneficiaries to 10.35 crores.

It is not known how much the decision would cost the exchequer but Shri Thakur said the Rs 200 per cylinder subsidy provided to Ujjwala consumers would cost Rs 7,680 crore in the current financial year ending March 31, 2024 (April 2023 to March 2024). While Ujjwala beneficiaries are only 9.6 crore, there are some 31 crore domestic cooking gas users in the country.