Are You Eligible for RS 1,000 LPG Cylinder Subsidy? Check the Rules and Benefit

The Centre has clarified that even with the cylinder's real cost at ₹1,600, people are getting a big benefit. General users get an indirect subsidy of ₹700, and Ujjwala users get a whopping ₹1,000. Here's the full breakdown.

Govt explains the 'hidden' LPG subsidy.

The Central Government says customers are getting a big indirect subsidy on domestic LPG cylinders, even after a recent ₹29 price hike. According to the government, non-Ujjwala users get a benefit of about ₹700, while Ujjwala beneficiaries receive a subsidy of ₹1,000. Praveen Mal Khanooja, Additional Secretary at the Ministry of Petroleum and Natural Gas, explained that the real cost of a 14.2 kg cylinder, based on the Saudi Contract Price (Saudi CP), is over ₹1,600. However, customers are only paying ₹942 for it.

Cylinder worth ₹1,600 sold for just ₹942.

Praveen Mal Khanooja told reporters, "Whether I am an Ujjwala customer or not, I am buying a cylinder worth ₹1,600 for just ₹942. This itself is an indirect subsidy." He added that Ujjwala customers get an extra ₹300, bringing their total subsidy to ₹1,000, while others still get ₹700. He also pointed out that Oil Marketing Companies (OMCs) are currently losing about ₹700 on every 14.2 kg cylinder. Despite the government compensating OMCs with ₹52,000 crore in past financial years, the situation remains challenging. Khanooja assured that despite tensions in West Asia, the supply of crude oil, LPG, and natural gas is stable.

Is the ₹29 price hike really a burden?

The government provides a ₹300 subsidy for the first four cylinders annually to Ujjwala customers, which covers their average yearly use of 4-5 cylinders. Speaking on the recent ₹29 price hike, Khanooja broke it down, saying it's just ₹1 per day or 20 paise per person in a family that uses 12 cylinders a year. He called this a very small increase compared to the ₹700 loss per cylinder. Khanooja also revealed that oil companies are losing ₹30 per litre on diesel and ₹6 per litre on petrol, causing a daily loss of ₹600-700 crore for the entire sector.