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.

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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.

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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.

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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.