With eyes set firmly on the forthcoming general elections, the Union Cabinet on Tuesday, August 29, approved reduction in prices of LPG gas cylinders by Rs 200 for all connection holders. The Cabinet also approved an additional subsidy of Rs 200 under the Ujjwala scheme, which means beneficiaries now get a total subsidy of Rs 400.

In addition to this, the Cabinet has also cleared the proposal to give 75 lakh new LPG cylinders connections under the Ujjwala scheme, thus taking the total beneficiaries to more than 10 crore across the country, Information and Broadcasting Minister Anurag Thakur told mediapersons after the Cabinet briefing.

As of now, the price of domestic LPG, which is used in the kitchen for cooking purposes, is Rs 1,103 per 14.2-kg cylinder in New Delhi, Rs 1,105 in Bengaluru, Rs 1,118 in Chennai, Rs 1,112 in Thiruvananthapuram and Rs 1,155 in Hyderabad. This will now come down by Rs 200 per cylinder. Domestic LPG cylinder prices were last revised on March 1, when they were hiked by Rs 50 per cylinder.

The decision comes at a time when Assembly elections are scheduled in four states in December and Lok Sabha polls are to be held next year. Oil marketing companies (OMCs) have been reporting heavy under-recoveries due to lack of hike in prices of domestic cooking gas. Under the Ujjwala scheme, the government provided free LPG connection to women beneficiaries in rural households.

The beneficiaries already get a Rs 200 subsidy and now there will be further Rs 200 cut for all domestic LPG connection holders, Thakur said. He further informed that the new connections are being given to those beneficiaries who have been added owing to marriages and issuance of new ration cards.