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Centre increases LPG subsidy to Rs 300 for PM Ujjwala Yojana beneficiaries; check details

In August, the government had already taken steps to reduce the price of a 14.2-kilogram LPG cooking gas cylinder by Rs 200. Minister of Petroleum and Natural Gas, Hardeep Singh Puri, emphasized that the government would bear the promised Rs 200 price reduction on household cooking gas cylinders.

Centre increases LPG subsidy to Rs 300 for PM Ujjwala Yojana beneficiaries; check details AJR
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First Published Oct 4, 2023, 4:10 PM IST

Union Minister Anurag Thakur on Wednesday (October 4) revealed that the government has increased the subsidy amount for beneficiaries of the Pradhan Mantri Ujjwala Yojana. The subsidy for LPG cylinders under the program has been raised from Rs 200 to Rs 300, providing greater financial relief to the scheme's beneficiaries.

The Union Cabinet recently approved a significant change in the pricing structure for LPG cylinders, benefiting Pradhan Mantri Ujjwala Yojana beneficiaries. Currently, these beneficiaries pay Rs 703 for a 14.2-kg cylinder, whereas the market price is Rs 903. However, after this decision, their cost will be reduced to Rs 603 per cylinder, offering substantial relief.

In August, the government had already taken steps to reduce the price of a 14.2-kilogram LPG cooking gas cylinder by Rs 200. Minister of Petroleum and Natural Gas, Hardeep Singh Puri, emphasized that the government would bear the promised Rs 200 price reduction on household cooking gas cylinders.

This decision aimed to alleviate the financial burden on oil marketing companies (OMCs) and prevent an impending loss of Rs 7,500 crore.

Initially, oil marketing companies (OMCs) expressed concerns about the financial implications of the government's decision, estimating a significant impact of nearly Rs 7,500 crore. Nevertheless, the Union Cabinet's move in August was a strategic effort to counter the impact of domestic consumer inflation by reducing the cost of LPG cylinders for consumers.

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