Frequent increase in cooking gas prices, often sharply, and the Centre’s emphasis on targetted liquefied petroleum gas (LPG) subsidy, has turned the spotlight on the domestic fuel in the battle of hustings with the ruling BRS in Telangana and opposition Congress promising to cap the LPG cylinder consumer price by adding a layer of State government subsidy.
Though not new as cooking gas prominently figured in the price rise debate for long and there also had been a few measures such as Deepam scheme for new connections and a subsidy of ₹50 per refill in erstwhile united Andhra Pradesh, to reduce the burden of households, the circumstances this time and financial implications likely are different. The Bharatiya Janata Party (BJP), which is aspiring for a record consecutive third term in next year’s general elections, slashed cooking gas cylinder prices in August by ₹200 per refill for all domestic consumers in the run-up to polls in five States. The reduction brought down the 14.2-kg cylinder refill price from ₹1,155 to ₹955 for households in Hyderabad.
Within months of what the Prime Minister Narendra Modi then described as Raksha Bandhan gift to the sisters of the country, the government in October followed it up with a ₹100 increase in subsidy payout per refill to beneficiaries under its PMUY or Ujjwala scheme. Prior to this, such users were getting ₹200 subsidy.
