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Govt Announces Surprise Cut in LPG Cylinder Prices, More Benefits Under PMUY

The Centre's decision to slash cooking gas prices comes ahead of several state Assembly elections.

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LPG gas cylinders are set to suddenly get cheaper for all domestic consumers in India.

How much cheaper? Each cylinder will cost ₹200 less after a decision was taken by the Union Cabinet in a meeting on Tuesday, 29 August, Union Sports Minister Anurag Thakur announced in a press briefing.

  • The new, lower prices are effective starting Wednesday, 30 August.

For beneficiaries of the central government's Pradhan Mantri Ujjwala Yojana (PMUY), an additional subsidy of ₹200 has been approved.

  • Free gas connection will also be provided to 75 lakh women under the Ujjwala scheme. These women will also get the gas burner, first cooking gas cylinder, and pipe at no charge, Thakur informed.

Why it matters: The Union Cabinet's decision to slash cooking gas prices comes ahead of Assembly elections set to be held later this year in several states such as Madhya Pradesh; not to mention the big general elections in 2024.

Yes, but: Denying that the price cut had anything to do with the upcoming polls, Thakur said, "PM Modi has decided ₹200 reduction in the price of domestic LPG cylinders, for all users...this is a gift from PM Narendra Modi, to the women of the country, during the occasion of Raksha Bandhan and Onam."

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By the numbers: The ₹200 per cylinder subsidy provided to Ujjwala consumers would cost the government ₹7,680 crore in the current financial year ending March 31, 2024 (April 2023 to March 2024), Thakur reportedly said.

  • While Ujjwala beneficiaries are only 9.6 crore, there are some 31 crore domestic cooking gas users in the country, news agency PTI reported.

Meanwhile, the Congress has reportedly promised to provide LPG at ₹500 per cylinder if voted to power in poll-bound states like Madhya Pradesh and Rajasthan.

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