Centre to cover cost of ₹200 LPG cylinder price cut, assures Hardeep Singh Puri: Report
₹200 price decrease on household cooking gas cylinders, relieving the oil marketing companies of the impending loss of ₹7,500 crore. As a gift for the women in advance of Raksha Bandhan, the Union Cabinet on Tuesday lowered by 200 rupees the price of a 14.2 kilogramme LPG cooking gas cylinder. The decision was made as criticism of the Centre for its handling of rising inflation has grown.
Puri's declaration came a day after the government announced the price cuts on domestic cooking gas cylinders, in an exclusive interaction with CNBC-TV18, stated moneycontrol in its news report. To mitigate the impact of domestic consumer inflation, the Union Cabinet announced a price reduction on LPG on August 29. Oil marketing companies (OMCs) initially expressed apprehension about the Centre's decision, which they projected would have a financial impact of close to ₹7,500 crore.
According to moneycontrol news report, the oil minister highlighted that it has always been unclear who will be responsible for the financial effects of a decline in energy prices. He added that the Centre and the OMCs should work together to safeguard the average person's wealth. Also Read: LPG price cut by ₹200 per cylinder in inflation fight The oil minister complimented the Narendra Modi-led administration for adopting the much-needed price reduction for LPG cylinders and claimed that everyone in the country has applauded the Centre's most recent action.
He also applauded the government's initiatives to steadily increase home LPG connections. "Earlier, nearly 45 percent of the country's population was outside the LPG cylinder system, due to supply-chain issues and black market. In 2014, there were 14 crore domestic LPG connections, which has now gone up
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