LPG Cylinder Subsidy: Who can benefit and how much rebate you will get, read new rules

Domestic and commercial cooking gas cylinders have suffered a succession of price hikes in recent months.

New Delhi: Union Finance Minister Nirmala Sitharaman had announced an LPG subsidy last week, which would aid millions of Indian households that are struggling to keep up with rising inflation. The action by the Centre will primarily benefit households that have registered for the Pradhan Mantri Ujjwala Yojana.

“This year, we will give a subsidy of Rs 200 per gas cylinder (upto 12 cylinders) to over 9 crore beneficiaries of Pradhan Mantri Ujjwala Yojana. This will help our mothers and sisters. This will have a revenue implication of around Rs 6100 crore a year,” Union Finance Minister Nirmala Sitharaman said in a series of announcements on May 21.

As a result of the economic impacts of the Covid pandemic, the PM Ujjwala scheme will be phased out in June 2020.

Domestic and commercial cooking gas cylinders have suffered a succession of price hikes in recent months, according to the notice. In the national capital, a 14.2-kg LPG cylinder costs Rs 1,003. Following the government's decision, beneficiaries of the Pradhan Mantri Ujjwala Yojana will receive a subsidy of Rs 200 per cylinder in their bank accounts. The beneficiaries will pay Rs 803 per unit for a household LPG cylinder thanks to this subsidy.

The central government started the Pradhan Mantri Ujjwala Yojana (PMUY) in 2016 with the goal of making cooking gas available to rural and low-income households. "In May 2016, the Ministry of Petroleum and Natural Gas (MOPNG) launched the 'Pradhan Mantri Ujjwala Yojana' (PMUY) as a flagship scheme with the objective of making clean cooking fuel such as LPG available to rural and deprived households who were previously using traditional cooking fuels such as firewood, coal, cow-dung cakes, and so on," according to the PMUY website.