LPG Subsidy Extension Applicable For FY25, Says Union Minister Hardeep Singh Puri

The union minister stated that this decision will help create a positive impact in terms of the affordability of LPG cylinders and enhance its accessibility for several households across India

Puri informed that PM Modi during the cabinet meeting on Thursday ,announced that the LPG cylinder subsidy, which was to end on March 31, will be extended to 2024-25

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Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, underscored the importance of reducing cooking gas prices, referring to the recent reduction in prices by the government and notified that the extension on subsidy would last for the 2024-25 fiscal year. Notably, Prime Minister Narendra Modi slashed prices of domestic LPG cylinders on Friday by Rs 100, to celebrate the International Women’s Day. 

Applauding the move, Puri noted, “On International Women’s Day, PM Narendra Modi conveyed this significant decision of reducing LPG cylinders price by Rs 100. During the cabinet meeting on Thursday, PM Modi had announced that the LPG cylinder subsidy, which was to end on March 31, will be extended to 2024-25.”

The union minister stated that this decision will help create a positive impact in terms of the affordability of LPG cylinders and enhance its accessibility for several households across India, reported ANI.

Puri said that LPG cylinders were first introduced in 1950s, however, after more than six decades, only 14 crore cylinders were available in India today, showcasing their scarcity. He noted, “In the 1950s, LPG cylinders were made available. After more than 60 years, only 14 crore LPG cylinders were there in the country. It means LPG cylinders were a scarce commodity.”

Highlighting the process behind the making of the cylinders, he said, “Now, what goes into this cylinder? Liquified petroleum gas. Where does liquified petroleum gas come from? Is made from crude oil. In India, how much crude is domestically produced and how much is imported? Let me give you a rough figure, 85 per cent of the crude which goes into our refineries on a growing market in imported.”

Puri noted that when prices increased at the global level, domestically, prices were allowed to rise by 70 per cent, while the rest of the hike was absorbed. “Now we have taken September 2021 to September 2023. In this period, the prices came down by 4.56 per cent in Delhi. We were having no issues with the availability… You have to refine the crude oil in a refinery to make petrol and diesel. The prices of petrol and diesel were reduced in November 2021 and May 2022,” he added.