The government on Wednesday raised cooking gas subsidy for 96 million poor households by ₹100 per cylinder to a total of ₹300, which effectively makes refills cheaper by ₹500 per cylinder when compared to late August, when the price of the fuel was cut by ₹200 a cylinder for all 330 million customers.
Cooking gas cylinders (14.2 kg ones) will now be available for beneficiaries covered by the subsidised gas scheme, Ujjwala, at ₹603; it will continue to cost ₹903 for general customers. The move comes ahead of assembly elections in five states later this year, and persistent inflation, although it eased a bit in August and will likely do more in September. Retail inflation in August was 6.83%, down from a 15-month high of 7.44% in July.
Announcing the Cabinet’s decision, Union Information and broadcasting minister Anurag Thakur said the move is in keeping with the Narendra Modi government’s efforts to provide relief to the poor, particularly women. Thakur did not quantify its financial implication on the exchequer.
