Mumbai: Consumers will be much pleased by the Union Cabinet’s announcement on August 29 that LPG prices will be decreasing for household use ahead of the holiday season.
According to Union Minister Anurag Thakur, the current LPG cylinder subsidy for Ujjwala recipients is Rs 400.
Anurag Thakur said in a Cabinet briefing that the price of LPG cylinders under the Ujjwala Scheme would be reduced by Rs 200 per cylinder as a Rakshabandhan and Onam gift to customers.
“All domestic consumers of LPG cylinders to get Rs 200 subsidy per cylinder. Further, users under PM Ujwala scheme will get this subsidy on top of existing subsidy,” Thakur said.
33 crore consumers would receive an additional subsidy on LPG cylinders starting today, according to the ministry.
Customers of the PM Ujjwala Yojana would continue to get the Rs 200 per LPG cylinder subsidy on their accounts.
Additionally, the government has authorised 75 lakh more Ujjwala connections, bringing the total number of PM Ujjwala beneficiaries to 10.35 crores.
According to CNBC Awaaz, the government had been examining the under-recovery on the subsidy given for cooking gas.
Even though the cost of raw materials has declined from previous highs, LPG prices have not been reduced in a while. Oil marketing businesses anticipate making a public declaration about this soon.
Soon after CNBC-Awaaz’s report, shares of oil marketing companies like BPCL and HPCL began to decline from their day’s highs.
Domestic LPG, which is used in kitchens for cooking, is currently priced every 14.2-kg cylinder at Rs 1,103 in New Delhi. The cost of domestic LPG last increased by Rs. 50 per cylinder on March 1.
State-run Oil Marketing Companies (OMCs) were given a capital support budget of Rs 30,000 crore in the Union Budget 2023–24.
Pradhan Mantri Ujjwala Yojana (PMUY) was launched by Prime Minister Narendra Modi on May 1 2016 to distribute 50 million LPG connections to women of Below Poverty Line (BPL) families.