New Delhi [India], March 9 (ANI): Prices of cooking gas in India, after the latest round of reduction, are one of the lowest globally, and even lower than in most producing nations, according to the presentation made by Union Minister for Petroleum and Natural Gas during a press conference on Saturday.
Prime Minister Narendra Modi announced a Rs 100 reduction in LPG prices on International Women’s Day on Friday. This reduction in gas prices is over the Rs 200 cut announced during Raksha Bandhan last year. The government has also decided to continue the Rs 300 LPG subsidy for Ujjwala beneficiaries for the next fiscal.
With the government moves, the standard 14.2-kg domestic LPG cylinder would now cost Rs 803 in Delhi, Rs 802.50 in Mumbai, Rs 829 in Kolkata, and Rs 818.50 in Chennai. The effective LPG cylinder price for Ujjwala consumers — including the subsidy benefit — would be Rs 503 in Delhi, Rs 502.50 in Mumbai, Rs 529 in Kolkata and Rs 518.50 in Chennai.
“Today at Rs 503 for 14 kg, poor in India are getting this imported essential fuel for one of the lowest prices, lower than prices in most producing nations as well,” the presentation said.
“56 lakhs LPG cylinders delivered daily. Out of this, 12.5 lakh taken by Ujjwala families. More than 50 per cent of payments for cylinders are done by digital means. All refills delivered within 48 hours of order placement at doorsteps,” it added.
India did not put the burden of rising energy prices on its citizens when global prices of LPG skyrocketed, and instead followed a citizens first approach, the minister said at the press conference.
During the Covid period from June 2020 to June 2022, the international prices of LPG increased by around 300 per cent, according to government data.
However, to insulate consumers from fluctuations in international LPG prices, the cost increase was not fully passed on to consumers of domestic LPG. Accordingly, domestic LPG prices were raised by only 72 per cent during this period, leading to significant losses for the oil marketing companies.
Despite these losses, the public sector oil marketing companies have ensured continuous supplies of this essential cooking fuel across the country.
“When the international prices went up, we allowed the price domestically only to go up by 70%, rest of it was absorbed…In this period, the prices came down by 4.56% in Delhi. We were having no issues with the availability… You have to refine the crude oil in a refinery to make petrol and diesel. The prices of petrol and diesel were reduced in November 2021 and May 2022,” Minister Hardeep Puri said at a press conference.
He added the central government under Prime Minister Narendra Modi ensured only a marginal price rise, which led to under-recovery of about Rs 28,000 crore for oil companies.
He said 14 crore free LPG gas refills were provided to consumers during the Covid.
Later in October 2022, the central government gave a one-time grant amounting to Rs 22,000 crore to three Public Sector Undertaking Oil Marketing Companies (PSU OMCs). The grant was distributed among Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL).
About 85 per cent of India’s crude requirements are met by imports, with the price of crude in the international market being the benchmark.
Also, the minister delved upon how the government had foregone revenue just to subsidise the consumers.
The excise duty on petrol and diesel was cut by Rs 13 per litre and Rs 16 per litre, respectively, in two tranches, between November 2021 and May 2022. Also, he said many BJP-ruled states have subsequently reduced VAT on fuel to provide extra relief to the consumers.
About Rs 2.2 lakh crore in revenue was foregone, the minister apprised.
BJP leaders have past criticised the state governments led by Congress and some other parties for not reducing VAT on petroleum products to provide relief to people. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.