Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » India cuts prices of cooking gas as inflation bites

    India cuts prices of cooking gas as inflation bites

    August 30, 2023
    Share
    Facebook Twitter LinkedIn WhatsApp

     

    Cooking gas cylinders

    New Delhi — India cut the price of cooking gas for households on Tuesday by about 18% to rein in inflation ahead of crucial state and general elections.

    The government reduced the price by 200 rupees ($2.42) on a 14.2-kilogram (33 pounds) cooking gas cylinder sold to 330 million households, Information Minister  told reporters.

    The decision will impact about 100 million low-income families who form a key voter base and have felt the pinch of the rise in food prices over the last few months, as India’s annual retail inflation hit a 15-month high in July.

    Prime Minister Narendra Modi’s government has been criticised by the opposition over high inflation and the price of liquefied petroleum gas (LPG) ahead of elections in five states in the coming months and national elections in mid-2024.

    “This is a gift to millions of my sisters of the country,” Modi said in a statement, adding that his government “will always do everything possible that improves people’s quality of life and benefits the poor and middle class.”

    The government will have to spend an additional 40 billion rupees for the enhanced cooking gas subsidy, in addition to about 76 billion rupees it has budgeted for the current fiscal year.

    India imports about 60% of its liquefied petroleum gas requirement, and Thakur said LPG prices globally have surged 303% since April 2020.

    The cut will double the subsidy support provided to the country’s 96 million poor under a welfare programme, increasing it to 400 rupees per cylinder as part of the “Ujjwala scheme”.

    The subsidy extension on cooking gas was one of the key factors that helped Modi win the 2019 general election.

    Prices of cooking gas will be reduced to 903 rupees per cylinder for domestic consumers in New Delhi following the cut and to 703 per cylinder for welfare programme beneficiaries. LPG is part of the fuel and light basket, which constitutes nearly 8% of the retail inflation basket.

    The federal cabinet has also approved a plan to provide free cooking gas stove and connection to 7.5 million new beneficiaries under the scheme, Thakur said.

    ($1 = 82.7345 Indian rupees)

    Reporting by Nidhi Verma, Aftab Ahmed; Writing by Shivam Patel; Editing by Sharon Singleton, Mike Harrison and Susan Fenton – Reuters

    Follow us on twitter

    Related News

    ADNOC Gas takes FID and awards $5b contracts for RGD project

    ‘Shell’s decision on Phase 2 of LNG Canada will depend on other opportunities’

    Nigeria loses N710bn to gas flaring in four months

    E-book
    Resilience Exhibition

    Latest News

    Oil prices climb to 2-month high on US-China trade deal, worries about Iran supply

    June 11, 2025

    Kenya central bank lowers 2026 growth forecast to 5.4%

    June 11, 2025

    Nigeria partners Brazil to develop methanol complex 

    June 11, 2025

    FG to train 100,000 youths annually in forex trading

    June 11, 2025

    China, Africa ask US to return to ‘right track’ on trade differences

    June 11, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.