Cabinet Approves To Cut LPG Cylinder Price By Rs 200 After Inflation Spikes
The subsidy for Ujjwala Scheme beneficiaries rises to Rs 400 per refill.
The cabinet approved to cut the price of domestic cooking gas cylinder by Rs 200 for all consumers as they grapple with rising inflation.
From Aug. 30, the price of a 14.2 kg LPG cylinder will be reduced by Rs 200 in all markets across the country, Union Minister Anurag Thakur said on Tuesday. This is expected to benefit 33 crore connections, he said, calling it a Rakhi gift. The move is expected to cost Rs 7,680 crore in fiscal 2024.
In Delhi, the price of a refill will come down from Rs 1,103 to Rs 903 per cylinder. The price reduction will increase subsidy for beneficiaries under the Pradhan Mantri Ujjwala Yojana to Rs 400. For such households, the effective price in Delhi will be Rs 703 per cylinder.
The cooking gas price cut is aimed at easing rising costs for households. Consumer inflation spiked to 15-month of 7.44% In July.
"We understand the challenges faced by households in managing their budgets," Hardeep Singh Puri, minister of petroleum and natural gas. "The reduction in cooking gas prices is aimed at providing direct relief to families and individuals, while also supporting the government’s larger goal of ensuring affordable access to essential items."
Thakur said around 75 lakh new households who do not have LPG connections have been added to the Ujjwala Scheme, raising its total tally of beneficiaries to 10.35 crore.
