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Ahead of elections, Centre slashes LPG prices by Rs 200 per cylinder

In a significant move to counter the cheaper LPG promise of the Congress in upcoming assembly elections, the central government announced a reduction of Rs 200 per cylinder in the prices of domestic cooking gas. At present, a 14.2-kg LPG cylinder in the national capital costs Rs 1,103 – more than double the rate in May 2020. It will cost Rs 903 when the decision is implemented from Wednesday. For Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries, the price will be Rs 703 after considering the Rs 200 subsidy.

Announcing the decision, Information and Broadcasting Minister Anurag Thakur said the move is aimed at providing relief to households. “These decisions come as part of the government’s ongoing efforts to ease the financial burden on citizens and promote the welfare of households. The reduction in cooking gas prices reflects the government’s commitment to prioritize the well-being of its citizens and ensure access to essential commodities at reasonable rates,” an official statement said.

Raksha Bandhan Gift

Prime Minister Narendra Modi unveiled this price reduction as a Raksha Bandhan gift for all the women of the nation. On social media platform X (formerly Twitter), PM Modi stated in Hindi, “The festival of Raksha Bandhan is about increasing happiness within the family. The reduction in gas prices will provide more comfort to the sisters in my family and make their lives easier. May every sister of mine be happy and healthy, this is my wish from God.,”

Enhanced Benefits for PMUY Beneficiaries

In addition to the existing Rs 200 subsidy provided under the Pradhan Mantri Ujjwala Yojana (PMUY), recipients of the scheme will receive an additional Rs 200 subsidy, amplifying the relief provided to households. For PMUY households, therefore, the effective price in Delhi after this reduction will be Rs 703 per cylinder, as per the official statement released by the government. This initiative marks a significant step toward reducing the financial strain on economically vulnerable families.

With over 31 crore domestic LPG consumers, including 9.6 crore PMUY beneficiary families, this decision will provide significant financial relief to a broad spectrum of citizens. Also, the government will provide an additional 75 lakh Ujjwala connections, which will take the total PMUY beneficiaries to 10.35 crores.

Election-Year Move: Political Implications

The timing of this reduction is noteworthy, as it comes ahead of Assembly polls in five states, including Rajasthan, Chhattisgarh, Madhya Pradesh, Telangana, and Mizoram. With the current term of the Narendra Modi administration at the Centre ending next year, the reduction in cooking gas prices carries both economic and political significance.

Opposition parties criticise the move, branding it as a “gift” aimed at countering their promises of more affordable LPG. Congress general secretary (communications) Jairam Ramesh stated that the reduction in LPG prices was a direct response to the BJP’s defeat in Karnataka polls, where the high cost of LPG featured prominently.

West Bengal Chief Minister Mamata Banerjee also weighed in, attributing the LPG price reduction to the impact of the opposition alliance I.N.D.I.A. She highlighted that this move aligns with the narrative of opposition unity in the country.

Congress party had made the high LPG prices an election issue in the recently concluded assembly elections in Karnataka. The party has also promised to give LPG at Rs 500 per cylinder if voted to power in Madhya Pradesh, where elections are due in November-December.

As the country gears up for crucial state assembly elections and looks ahead to the Lok Sabha elections due next year, the reduction in cooking gas prices serves a dual purpose for the BJP-led central government. It tried to address the financial concerns of the households and resonates with the electorate’s worries about rising living costs which are poised to emerge as a pivotal electoral issue.

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