Another cooking gas subsidy hike may be on way
general elections next year, the Union government will likely offer additional relief to cooking gas customers by increasing subsidies under the Pradhan Mantri Ujjwala Yojana (PMUY), two people familiar with the development said. Currently, PMUY beneficiaries receive a ₹300 per cylinder subsidy for up to 12 cylinders annually, after the latest hike in subsidy announced last month. “Although the beneficiary base under PMUY has increased, customers under the scheme would require more relief, and further steps may be taken in coming months," one of the people cited above said, requesting anonymity.
The move is being considered to ease inflationary pressures on the common man, said a second person, also declining to be named. Retail inflation has stayed elevated in recent months. India’s consumer price inflation was above the Reserve Bank of India’s (RBI’s) tolerance band of 4-6% for several months before easing to 5.02% in September.
Queries emailed to the spokespeople for the ministries of petroleum and natural gas and finance remained unanswered. The plan to shield PMUY beneficiaries from high energy costs comes at a time of rising international oil and gas prices amid the Israel-Hamas conflict in West Asia. In the past few months, the Centre has announced a series of measures to cool cooking gas prices.
On 4 October, the Union cabinet approved an additional ₹100 subsidy on cooking gas for more than 95 million PMUY beneficiaries, taking the total subsidy to ₹300 per cylinder. In September, the cabinet approved slashing LPG prices by ₹200 per cylinder for all customers in the country. PMUY beneficiaries pay ₹603 per cylinder of cooking gas, which costs ₹903 in the national capital.
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