Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, shed light on matters related to the Ministry of Petroleum and Natural Gas during a press conference on Saturday.
Puri highlighted Prime Minister Narendra Modi’s recent decision to cut the prices of LPG cylinders by Rs 100, announced on International Women’s Day.
“During the cabinet meeting on Thursday, PM Modi announced that the LPG cylinder subsidy, which was to end on March 31, will be extended to 2024-25,” Puri said.
The Union Minister stated that with the latest price reduction, cooking gas in India is now priced even lower than in most producing nations, making it one of the lowest globally.
As a result of these measures, the standard 14.2-kg domestic LPG cylinder now costs Rs 803 in Delhi, Rs 802.50 in Mumbai, Rs 829 in Kolkata, and Rs 818.50 in Chennai. For Ujjwala consumers, including the subsidy benefit, the effective LPG cylinder price is further reduced to Rs 503 in Delhi, Rs 502.50 in Mumbai, Rs 529 in Kolkata, and Rs 518.50 in Chennai.
The petroleum minister lauded the government for making LPG cylinders easily accessible and affordable for millions of households across the country. He provided historical context, stating that LPG cylinders were introduced in the 1950s, yet even after over six decades, only 14 crore cylinders were available in India, indicating a shortage.
Addressing the consequences of this shortage, the Union Minister criticised what he termed as “irresponsible policy-making,” stating that the absence of adequate supply led to challenges in pricing and subsidy distribution.
Ujjwala Scheme
The Union Cabinet last week approved the continuation of the targeted subsidy of Rs 300 per 14.2 kg cylinder for Pradhan Mantri Ujjwala Yojana beneficiaries in FY 2024-25.
As of March 1, 2024, more than 10.27 crore individuals have benefited from PMUY. The total expenditure for this initiative is Rs 12,000 crore, credited directly to the beneficiaries’ bank accounts.
Launched in May 2016, the PMUY aims to provide deposit-free LPG connections to adult women in poor households. Given India’s dependence on importing about 60% of its LPG, the government initiated targeted subsidies, starting with Rs 200 in May 2022 and increasing to Rs 300 in October 2023.
As of February 1, the effective price of domestic LPG for PMUY consumers in Delhi is Rs 603 per 14.2 kg cylinder. Notably, the average LPG consumption of PMUY consumers increased by 29% from 3.01 refills in 2019-20 to 3.87 refills (till January 2024), showing the positive impact of these measures.
All PMUY beneficiaries are eligible for this targeted subsidy.