Cooking gas LPG subsidy has been limited for beneficiaries under the Ujjwala scheme. Accordingly, the remaining users including households will have to pay for their LPG cylinder at the market price. LPG subsidy: Govt give good news to 9 crore LPG users.
Government has limited subsidy on cooking gas LPG for only 9 crore poor women and other beneficiaries who got free connections under the Ujjwala scheme and the remaining users including households will pay the market price.
Oil Secretary Pankaj Jain at a news briefing said no subsidy is paid on cooking gas since June 2020 and the only subsidy that is provided is the one that Finance Minister Nirmala Sitharaman announced on March 21. “There was no subsidy for LPG users since the early days of Covid. Since then the only subsidy is one which had been introduced now for Ujjwala beneficiaries,” he said.
Ms Sitharaman had while announcing a cut in excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6, stated that Ujjwala scheme beneficiaries will get Rs 200 per cylinder subsidy for 12 bottles in a year to help ease some of the burden arising from cooking gas rates rising to record levels.
A 14.2-kg LPG cylinder costs Rs 1,003 in the national capital. Pradhan Mantri Ujjwala Yojana beneficiaries will get Rs 200 subsidy directly in their bank account and the effective price for them would be Rs 803 per 14.2-kg cylinder. For the rest, it will cost Rs 1,003 in Delhi. The Rs 200 subsidy will cost the government Rs 6,100 crore, she had said.
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Non-subsidised or market priced LPG, which most users other than Ujjwala pay, have gone up by Rs 103.50 per 14.2-kg cylinder since October 2021 and by almost Rs 200 in one year. A 14.2-kg LPG cylinder was priced at Rs 809 in June 2021. Its prices were raised by about Rs 90 in the next four months. Prices were hiked by Rs 50 per cylinder in March and then again in May, rates went up by Rs 3.50.
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