New Delhi, June 8 (IANS). The government on Monday announced that it has reduced the number of subsidized LPG cylinders under the Pradhan Mantri Ujjwala Yojana (PMUY) from nine to four per year. The move is aimed at controlling rising subsidy costs amid rising global fuel prices and rising losses of oil marketing companies.
The decision comes at a time when the supply cost of domestic LPG has increased sharply, with the cost per cylinder rising to over Rs 1,600, while oil marketing companies are currently incurring losses of around Rs 700 on each cylinder sold.
Addressing a media briefing, Praveen Khanuja, Additional Secretary, Ministry of Petroleum and Natural Gas, said that eligible PMUY beneficiaries will continue to get a subsidy of Rs 300 on a 14.2 kg cylinder, but this subsidy will be valid only for the first four times in a year.
The annual subsidy assistance per family under this scheme is effectively limited to Rs 1,200.
Khanuja also informed that PMUY consumers in Delhi are currently paying Rs 642 for a 14.2 kg LPG cylinder, while normal consumers are paying Rs 942 for the same cylinder.
He further said that even non-Ujjwala scheme consumers are being protected from the full impact of global price volatility, as government interventions are providing relief to households from high international LPG rates.
According to the ministry, the increase in losses is mainly linked to the sharp rise in global LPG benchmarks, with the Saudi contract price (CP) – a key reference for imports – rising by nearly 46 per cent since February.
Meanwhile, domestic cooking gas prices were increased by Rs 29 per cylinder last week, the second increase in three months. State oil marketing companies remain under continued pressure due to rising global energy costs.
–IANS
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