LPG Price Cut: A day after the Center’s declaration of a Rs 200 decrease in the price of 14 kg LPG cylinders, it is reportedly clarified that oil marketing companies (OMCs) will not receive any compensation or subsidies for the reduction.
The Union Cabinet gave additional subsidy under the Ujjwala scheme. The additional subsidy has been pegged at Rs 200, which takes total subsidy to Rs 400 per cylinder for PMUY beneficiaries.
For the Ujjwala scheme beneficiaries, the price drop of an LPG cylinder will be Rs 400 — Rs 200 as price cut and Rs 200 as existing subsidy.
For consumers who are not beneficiaries of the Ujjwala scheme, the price cut will be by Rs 200 only. The price cut is effective from August 30.
As per a CNBC-Awaaz report, the current significant margin held by OMCs on LPG makes it challenging to accurately assess the cost implications of the price reduction. Additionally, the government is expected to reassess the situation based on consumption and global prices before making a comprehensive decision regarding potential price adjustments.
Cylinder prices in the country starting August 30, 2023 (City/Earlier Price/Revised Price)
The government on Tuesday announced a Rs 200 per cylinder cut in prices of domestic cooking gas as it looked to counter the cheaper LPG promise of the Congress in upcoming assembly elections in states like Madhya Pradesh. A 14.2-kg LPG cylinder costs Rs 1,103 in New Delhi currently. It will cost Rs 903 from Wednesday.
For Ujjwala beneficiaries, the price will be Rs 703 after considering the continuing Rs 200 per cylinder subsidy. Announcing the decision, Information and Broadcasting Minister Anurag Thakur said the move is aimed at providing relief to households.
Also, the government will provide an additional 75 lakh Ujjwala connections, which will take the total PMUY beneficiaries to 10.35 crores.
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