pm ujjwala yojana: Big news for PM Ujjwala Gas holders. Cetral Government took big decision. On June 7th, the price of cooking gas (LPG) was increased by Rs 29 per cylinder. Following this increase, the price of a 14.2-kilogram LPG cylinder in the national capital, Delhi, has now reached Rs 942. However, under a scheme launched by the Modi government, millions of people are still receiving LPG cylinders for Rs 642. Let’s find out the details.
What seems to be the issue?
The government provides subsidized cylinders through the Pradhan Mantri Ujjwala Yojana (PMUY). In May 2022, a targeted subsidy of Rs 200 per cylinder was introduced for beneficiaries of the Ujjwala Yojana, which was later raised to Rs 300 in October 2023. This subsidy is directly credited to the bank accounts of the beneficiaries. Consequently, in Delhi, Ujjwala beneficiaries are paying Rs 642 more for a cylinder compared to regular customers.
It’s important to mention that the price of a 14.2-kilogram LPG cylinder for regular consumers in Delhi has now reached Rs 942 following two recent price hikes. This marks the second increase in domestic cooking gas prices since the onset of the Middle East crisis, with the previous hike being Rs 60 on March 7th.
In the meantime, the Modi government has cut the annual limit for subsidized LPG cylinders from nine to four. Initially, under the scheme launched in 2016, beneficiaries were entitled to 12 subsidized 14.2-kilogram cylinders each year. However, this was reduced to nine last year and has now been further decreased to four.
Praveen Mal Khanuja, the additional secretary in the Ministry of Petroleum and Natural Gas, mentioned that the new limit aligns closely with the average annual gas consumption of Ujjwala beneficiaries. He emphasized that the government’s goal is to offer support tailored to the beneficiaries’ needs.
What effect will this have on your stock portfolio?
He noted that petroleum companies are currently losing around Rs 700 per cylinder on LPG sales. Additionally, they are facing losses on petrol and diesel sales as they are being sold below cost. He explained that overall, petroleum companies are experiencing losses ranging from Rs 600 to 700 crore due to the rising oil and gas prices.
