Government Slashes Domestic LPG Prices

  Sep 05, 2023

Government's Decision to Cut Domestic LPG Prices

Q: Why did the government decide to reduce the price of domestic LPG?

A: The government's decision to lower the price of domestic LPG by ₹200 per cylinder aims to combat kitchen inflation and provide immediate relief to households. This move comes ahead of important state elections and is aligned with the government's commitment to improving the quality of life for citizens, particularly those in the lower and middle-income brackets.

Q: What significance does this decision hold?

A: The reduction in LPG prices is being viewed as a thoughtful gesture towards citizens, especially women, on the occasion of Raksha Bandhan. It underscores the government's dedication to easing the impact of rising costs and extending support to families and individuals during these challenging economic times.

Q: How has the prevailing inflation rate influenced this decision?

A: Against the backdrop of a rising retail inflation rate, as measured by the Consumer Price Index (CPI), which has reached 7.4%, the government has taken this step to directly alleviate some of the financial burden faced by households. This decision aligns with the Prime Minister's commitment to minimizing the inflationary pressure on the public.

Q: Could you explain the PM Ujjwala Yojana?

A: The PM Ujjwala Yojana is a government initiative aimed at providing deposit-free LPG connections to women from economically disadvantaged households. Under this scheme, beneficiaries receive a subsidy through the Direct Benefit Transfer (DBT) method, where the subsidy amount is directly credited to their bank accounts.

Q: How does the subsidy mechanism work for PM Ujjwala consumers?

A: For PM Ujjwala consumers, the subsidy process involves making the full payment for the LPG cylinder initially. Subsequently, a subsidy of ₹200 is transferred directly to their bank accounts through the DBT mechanism. With this additional ₹200 subsidy, the effective reduction in cost for PM Ujjwala consumers amounts to ₹400.

Q: How does this decision impact consumers not covered by PM Ujjwala?

A: Consumers who do not fall under the PM Ujjwala scheme will experience a reduction in the cost of LPG cylinders as the government subsidizes oil companies by ₹200 per cylinder. For example, a non-subsidized LPG cylinder that previously cost ₹1,103 will now be available for ₹903.

Q: What is the government's aim in expanding the PM Ujjwala Yojana?

A: The government's decision to expand the PM Ujjwala Yojana involves addressing pending applications and providing deposit-free LPG connections to an additional 75 lakh women from economically disadvantaged households. This expansion will increase the total number of beneficiaries covered by PM Ujjwala.

Q: How has the consumption pattern of PM Ujjwala consumers changed?

A: The targeted support provided to PM Ujjwala consumers has led to a positive shift in their cooking practices. The average LPG consumption among PM Ujjwala beneficiaries has witnessed a 20% increase from 2019-20 to 2021-22. This shift towards cleaner cooking practices contributes to enhanced public health.
For further insights into the government's decision to reduce LPG prices and its implications, please refer to our comprehensive Library of Current Affairs FAQ at


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