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NEW DELHI: The government on Friday extended by a year the Rs 200 subsidy on 12 domestic LPG refills supplied to poor households in a year under the ‘Ujjwala’ scheme, one of the Narendra Modi government’s flagship social welfare schemes.
The decision to extend the relief was taken by the Cabinet’s panel on economic affairs will cost the exchequer Rs 6,100 crore in 2022-23 and Rs 7,680 crore in 2023-24.
There are 9.59 crore consumers who have been given LPG connection free of cost under the Ujjwala scheme launched on May 1, 2016. The government did away with subsidies on the general category of LPG consumers from May 2020 when global oil and refined product prices tanked as the world shut down to check the spread of Covid.
The subsidy for Ujjwala connection holders was announced by the finance ministry on May 21 last year together with a reduction in excise duty to the tune of Rs 8 per litre on petrol and Rs 6 on diesel with the aim of giving relief from soaring fuel prices and inflation as a result of Russia’s invasion of Ukraine.
“There has been a sharp increase in international prices of LPG due to various geopolitical reasons. It is important to shield PMUY (Ujjwala) beneficiaries from high LPG prices,” the government said on Friday.
The decision to extend the relief was taken by the Cabinet’s panel on economic affairs will cost the exchequer Rs 6,100 crore in 2022-23 and Rs 7,680 crore in 2023-24.
There are 9.59 crore consumers who have been given LPG connection free of cost under the Ujjwala scheme launched on May 1, 2016. The government did away with subsidies on the general category of LPG consumers from May 2020 when global oil and refined product prices tanked as the world shut down to check the spread of Covid.
The subsidy for Ujjwala connection holders was announced by the finance ministry on May 21 last year together with a reduction in excise duty to the tune of Rs 8 per litre on petrol and Rs 6 on diesel with the aim of giving relief from soaring fuel prices and inflation as a result of Russia’s invasion of Ukraine.
“There has been a sharp increase in international prices of LPG due to various geopolitical reasons. It is important to shield PMUY (Ujjwala) beneficiaries from high LPG prices,” the government said on Friday.
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