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For Ujjwala beneficiaries, the price will be Rs 703 after considering the continuing Rs 200 per cylinder subsidy

LPG price slashed by ₹200 for all consumers

LPG price slashed by ₹200 ahead of election, now at ₹903 in Delhi

The price of an LPG cylinder has been reduced by Rs 200

In a move to counter the Congress party's promise of cheaper LPG in upcoming state assembly elections in Madhya Pradesh, the central government has reduced the prices of domestic cooking gas by Rs 200 per cylinder.&nbsp; Presently, a 14.2-kg LPG cylinder in the national capital costs Rs 1,103, more than double the rate it held in May 2020. This price will now be reduced to Rs 903 starting from Wednesday. For Ujjwala beneficiaries, the price will further reduce to Rs 703 after considering the ongoing Rs 200 per cylinder subsidy.
Information and Broadcasting Minister Anurag Thakur stated that this decision aims to provide relief to households. Additionally, the government plans to extend an additional 75 lakh Ujjwala connections, expanding the total beneficiaries of the Pradhan Mantri Ujjwala Yojana to 10.35 crores.
The move comes against the backdrop of rising cooking gas prices over the past years, which have become a significant electoral issue. The Congress party effectively used the high LPG prices as a point of contention in recent assembly elections, promising to provide LPG at Rs 500 per cylinder if voted into power in states like Madhya Pradesh and Rajasthan.
Thakur, however, declined to link the price cut decision with elections, attributing it as a gesture from the Modi government to commemorate festivals like Onam and Raksha Bandhan.
While the source of funding for the price cut was not specified, it is presumed that state-owned fuel retailers will reduce the prices and later receive compensation from the government. Thakur estimated that the Rs 200 per cylinder subsidy provided to Ujjwala consumers would amount to Rs 7,680 crore in the current financial year.
The decision will revive the subsidy regime, except if the government instructs oil companies to absorb the cut without compensation. The government had earlier stopped LPG subsidies in June 2020, pricing cooking gas at the market rate.
The reduction in cooking gas prices reflects the government's commitment to prioritize the well-being of its citizens and ensure access to essential commodities at reasonable rates. These decisions underscore the government's ongoing efforts to ease the financial burden on citizens and promote the welfare of households.
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