LPG price cut to have financial implication of Rs.7,680 cr in current fiscal

The Cabinet also cleared the proposal to give 75 lakh new LPG cylinders connections under the Ujjwala scheme

August 30, 2023

The additional subsidy on LPG cylinders will come into effect immediately as a ‘Raksha Bandhan’ and ‘Onam’ gift

As the government on Tuesday announced a Rs.200 cut in the price of cooking gas cylinders for all subscribers, the financial implication of the decision will come to around Rs.7,680 crore for the 2023-24 fiscal, official sources said.

Ujjwala scheme subscribers already get a Rs.200 subsidy on cooking gas cylinders, while the reduction of Rs.200 in prices of LPG cylinders announced on Tuesday will be on top of that, Information and Broadcasting Minister Anurag Thakur told media persons after the Union Cabinet meeting.

The Cabinet also cleared the proposal to give 75 lakh new LPG cylinders connections under the Ujjwala scheme, thus taking the total beneficiaries to more than 10 crores across the country.

The additional subsidy on LPG cylinders will come into effect immediately as a ‘Raksha Bandhan‘ and ‘Onam‘ gift, and will cost the exchequer Rs.7,680 crore, the Minister added.

As of now, the price of domestic LPG, which is used in the kitchen for cooking purposes, is Rs.1,103 per 14.2-kg cylinder in New Delhi. This will now come down by Rs.200 per cylinder.

Domestic LPG cylinder prices were last revised on March 1, when they were hiked by Rs.50 per cylinder.

[With Inputs from IANS]

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