LPG Price Cut of ₹200 Aims to Alleviate Households Amidst Election Buzz

New Delhi: The government on Tuesday declared a significant reduction of Rs 200 per cylinder in domestic cooking gas prices, countering the opposition’s promise of cheaper LPG in upcoming state assembly elections. Presently, a 14.2-kg LPG cylinder costs Rs 1,103 in the national capital, but this will decrease to Rs 903 following the implementation of this decision.

For Ujjwala beneficiaries, the price will be further reduced to Rs 703 with the existing subsidy. The move aims to provide relief to households and coincides with the distribution of 75 lakh additional Ujjwala connections, increasing the total beneficiaries to 10.35 crores.

High cooking gas prices have become a key election issue, with the Congress party using the issue effectively in recent elections. Despite speculation about the decision being linked to the elections, Information and Broadcasting Minister, Anurag Thakur stated that it’s a gesture from the government on the occasions of Onam and Raksha Bandhan. The cost of the Rs 200 per cylinder subsidy for Ujjwala consumers is estimated at Rs 7,680 crore in the current financial year.

This price reduction marks a return to the subsidy regime, potentially involving state-owned fuel retailers reducing prices and later being compensated by the government.

Previously, in June 2020, LPG subsidies were halted except for Pradhan Mantri Ujjwala Yojana beneficiaries who received Rs 200 per cylinder subsidy for up to 12 refills per year. The recent decision is aimed at easing financial burdens on citizens and ensuring access to essential commodities at reasonable rates.