In a recent move aimed at easing the financial burden on both households and commercial consumers, state-run fuel retailers in India have announced significant reductions in the prices of liquefied petroleum gas (LPG). The price cuts come in two categories: for non-subsidized LPG cylinders used in commercial applications and for subsidized LPG cylinders primarily used for cooking in households.
Effective immediately, the price of non-subsidized 19-kg LPG cylinders, commonly utilized in hotels, restaurants, and industrial settings, has been reduced by ₹30.50 per refill. This adjustment means that consumers in Delhi will now pay ₹1,764.50, those in Kolkata ₹1,879, in Mumbai ₹1,717.50, and in Chennai ₹1,930 per cylinder. The variation in prices across regions is due to variances in local levies.
Simultaneously, subsidized 14.2-kg LPG cylinders, predominantly used for household cooking purposes, remain unchanged in price. However, the recent global decline in LPG prices will proportionately decrease the government’s subsidy burden. As of the latest announcement on March 8, these cylinders are sold at ₹803 each for general customers in New Delhi, while under the Pradhan Mantri Ujjwala Yojana (PMUY), 102.7 million economically disadvantaged households can avail them at ₹503 per cylinder.
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This reduction follows Prime Minister Narendra Modi’s announcement on March 8, coinciding with International Women’s Day, where he declared a ₹100 price cut on 14.2-kg LPG cylinders for all consumers. In a tweet, he stated, “Today, on Women’s Day, our Government has decided to reduce LPG cylinder prices by ₹100. This will significantly ease the financial burden on millions of households across the country, especially benefiting our Nari Shakti.”
This move came on the heels of another crucial decision by the Union Cabinet to allocate ₹12,000 crore towards PMUY beneficiaries. This allocation extended the ₹300 subsidy on every cooking gas refill for an additional year, until March 31, 2025. Without this extension, the subsidy scheme for economically disadvantaged households would have expired on March 31.
Under the PMUY, beneficiaries not only receive subsidized cylinders but also free gas connections. Launched by the Modi government in May 2016, this initiative aims to provide clean cooking fuel to rural and economically deprived households. The scheme facilitates deposit-free cooking gas connections specifically targeting adult women from impoverished backgrounds.
India’s reliance on LPG imports, which constitute over 60% of domestic consumption, underscores the importance of global market dynamics in determining prices. Commercial LPG prices in India are directly linked to international market rates, thus making adjustments necessary in response to global fluctuations.
The recent price cuts in both commercial and household LPG cylinders underscore the government’s commitment to ensuring affordable access to essential commodities. By reducing the financial burden on households and commercial establishments alike, these measures aim to alleviate economic stress and promote cleaner energy consumption practices.
Moreover, initiatives like the PMUY play a crucial role in extending the benefits of subsidized LPG to those most in need, thereby contributing to poverty alleviation and women’s empowerment. The government’s proactive approach in extending subsidy schemes and adapting to global market trends demonstrates a commitment to addressing the diverse needs of Indian consumers while fostering sustainable development.
In conclusion, the recent adjustments in LPG prices reflect a concerted effort by the government to balance economic considerations with social welfare objectives. By providing relief to households and commercial consumers, these measures contribute to broader goals of inclusive growth and environmental sustainability in India’s energy sector.
