Govt slashes LPG prices by ₹200 and expands PM Ujjwala Yojana

Govt slashes LPG prices by ₹200 and expands PM Ujjwala Yojana

Subject: Schemes

Section: Energy

Context:: In an effort to tame kitchen inflation Government has the lowering of the price of LPG gas by Rs. 200 and expands PM Ujjwala Yojana

Key Points:

• The price of domestic LPG (Liquefied Petroleum Gas) has been reduced by 200 with immediate effect for all 33 crore connections.
• Further It has been decided to issue another 75 lakh connections under PM Ujjawala Yojana (PMUY).
• Since May 2020, there has not been a subsidy on LPG cylinders for connection holders except Ujjawala. Even for Ujjawala, ₹200 per cylinder subsidy was announced only in May 2021.
• So now under Ujjwala scheme total subsidy will be Rs. 400 per cylinder, bringing the cost to Rs. 700.
• Ujjawala consumers get subsidies through Direct Benefit Transfer (DBT). This means first, they pay the entire price and a subsidy of ₹200 is transferred to their bank accounts. There is no change in this system. However, an additional ₹200 will be reflected in their price.
• For all other consumers, the cylinder cost will come down, and there is no DBT. For example, a non-subsidised LPG cylinder (14.2 kg) used to cost ₹1,103, now it will cost ₹903.
• Government will shortly start distribution of PMUY connections to 75-lakh women from poor households who do not have an LPG connection. This will increase the total number of beneficiaries under PMUY from 9.6 cr to 10.35 cr.
• PM Ujjwala Yojana:
  • Launched in May 2016 to provide LPG (liquefied petroleum gas) connections to poor households.
  • During Ujjwala 1.0 launched in 2016, a target was set to provide LPG connections to 5 crore (in 2018 revised to 8 crore) women members of BPL households.
  • In Ujjwala 2.0, special focus was on migrants, they will not be required to submit ration cards or address proof. A self-declaration for both ‘family declaration’ and as a ‘proof of address’ will suffice.
• What is the criteria for PMUY?
  • Under Ujjwala initially the applicant had to be a woman belonging to the BPL household. The household of the applicant should not already own a LPG connection in anyone’s name in the household.
  • Subsequently, the scheme was expanded in April 2018 to include women beneficiaries from seven more categories (SC/ST, PMAY, AAY, Most backward classes, tea garden, forest dwellers, Islands).
  • Monthly household income of the BPL family should not exceed a certain level as defined by the state governments and union territories.