Centre hikes Ujjwala subsidy by Rs 100 per cylinder

The central government on Wednesday decided to increase subsidy on cooking gas for Ujjwala beneficiaries by Rs 100 per cylinder, just around a month after cutting the price of domestic LPG cylinders by Rs 200 each.

The union cabinet chaired by Prime Minister Narendra Modi took the decision that is aimed at wooing women voters ahead of assembly elections in Rajasthan, Madhya Pradesh, Telangana, Chhattisgarh and Mizoram and the crucial 2024 Lok Sabha election.

Beneficiaries of Pradhan Mantri Ujjwala Yojana already receive a subsidy of Rs 200 per cylinder. Now the subsidy is increased to Rs 300 per cylinder, Union Minister Anurag Thakur said at a media briefing after the cabinet meeting.

Ujjwala beneficiaries currently pay Rs 703 for a 14.2 kg LPG cylinder in Delhi. The new subsidy will bring down the price to Rs 603 per cylinder.

The decision to hike subsidies for Ujjwala beneficiaries comes just around a month after a general cut in the LPG cylinder price. On August 29, the Modi government decided to slash the price of liquefied petroleum gas (LPG) used for domestic cooking by Rs 200 per cylinder. The decision that came into effect from 30th August, is estimated to cost Rs 7,680 crore to the exchequer in the current financial year.

Ujjwala scheme, which was launched in May 2016, is seen as one of the most effective schemes in wooing women voters. The scheme seeks to offer clean cooking fuel access to economically disadvantaged women, particularly those below the poverty line.

At present the total number of domestic LPG connections in the country stands at over 31 crore, out of which 9.6 crore are Ujjwala connections.

In August, the Modi government decided to issue 75 lakh new Ujjwala connections. This will take the total number to 10.35 crore.