LPG Subsidy: Ujjwala Yojana and common customers are happy with gas subsidy, know how much burden will come on the exchequer

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LPG Subsidy: Before Rakhi, a big gift has been given by the central government to the common people and the beneficiaries of the Ujjwala scheme. The government has announced an additional subsidy of Rs 200 on LPG cylinders for general customers and Rs 200 for Ujjwala scheme customers. Already under the Ujjwala scheme, subsidy of Rs 200 is being given to the beneficiaries on the cylinder. This simply means that they will now get a subsidy of Rs 400 on the purchase of LPG cylinder. At present, more than 75 lakh LPG customers in the country are being given the benefit of the Ujjwala scheme. In such a situation, it is understood that due to this decision of the Central Government, a lot of pressure is going to come on the exchequer.

Decision taken in cabinet meeting

Information and Broadcasting Minister Anurag Thakur told reporters here that in the cabinet meeting chaired by Prime Minister Narendra Modi, it was decided to reduce the price of LPG cylinders by Rs 200 for all people. After this decision, the cost of 14.2 kg LPG cylinder in the capital Delhi will be Rs 903 from Wednesday, which is Rs 1,103 now. Compared to May 2020, the price of LPG cylinder is more than double now. With this, now the beneficiaries of Ujjwala Yojana will get a total benefit of Rs 400. They are already getting a subsidy of Rs.200. With this, the beneficiaries of Ujjwala Yojana will now get LPG cylinder for Rs.703. Thakur said that the objective of this initiative is to provide relief to the families. With this, the government will give new LPG connections to 75 lakh families under the Ujjwala scheme. With this, the number of beneficiaries of Pradhan Mantri Ujjwala Yojana will increase to 10.35 crore. In this regard, Prime Minister Narendra Modi said that the reduction in the prices of cooking gas will increase the comfort of women and make their life easier.

Decision taken keeping in mind the election

Experts say that in the last one or two years, the prices of cooking gas have increased and it has become a major election issue. Realizing the impact on people’s pockets due to high LPG prices, the Congress party has raised this issue vigorously. This was raised prominently in the recently concluded assembly elections in Karnataka. The party has promised to provide LPG at Rs 500 if voted to power in Madhya Pradesh. In Rajasthan also, the Congress government is providing LPG at the same price. Elections are to be held in both the states in November-December. However, Thakur refused to link the decision with the elections, saying it was a gift from the Modi government to women on the occasion of Onam and Raksha Bandhan. He did not say how the price cut would be ‘compensated’. It is believed that public sector petroleum companies selling retail fuel will reduce prices from Wednesday. Later the government will compensate for it.

7,680 crore will be spent in 2023-24

Anurag Thakur said that under the Ujjwala scheme, LPG subsidy of Rs 200 per cylinder is being given to the customers, its cost will be Rs 7,680 crore in the current financial year 2023-24. Ujjwala beneficiaries are only 9.6 crore, while 33 crore consumers use LPG for cooking. The government had stopped giving subsidy on LPG in June 2020. The determination of the price of cooking gas across the country was market based. Due to this, the price of LPG cylinder in the national capital Delhi has increased to Rs 1,103, which will now be reduced by Rs 200. The only subsidy was being given to the beneficiaries of the Ujjwala Yojana. The government gives a subsidy of Rs 200 per cylinder for filling 12 cylinders in a year. If the government itself bears the burden of Rs 200 cut in prices by not putting it on the retail petroleum companies, it means that the subsidy system has been brought back.

Financial burden on people will be less

The Central Government said in a statement that this decision is part of the ongoing efforts by the government to reduce the financial burden on the people and for their betterment. The reduction in the price of cooking gas reflects the commitment to prioritize the well-being of citizens and ensure access to essential commodities at reasonable rates.

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