Business Economy


Indian households buy cooking gas much cheaper than neighbouring countries, advanced economies: Petroleum Ministry

New Delhi, Jun 7 (UNI) Indian households continue to purchase cooking gas at prices significantly lower than those paid by households in neighbouring countries and far below those in advanced economies such as the United States, Australia, and Canada, the Ministry of Petroleum said on Sunday.
A beneficiary of the Pradhan Mantri Ujjwala Yojana (PMUY) pays an effective price of Rs 642 for a 14.2 kg LPG cylinder, while a general consumer in Delhi pays Rs 942, compared with the current supply cost of over Rs 1,600 per cylinder, the ministry said.
The ministry's statement comes at a time when the government has increased domestic LPG prices by Rs 29 per cylinder, marking the second hike in three months.
"The government continues to moderate the effective price paid by consumers for domestic LPG. Any household can purchase as many cylinders as it requires at Rs 942. A PMUY beneficiary additionally receives a direct benefit transfer of Rs 300 per cylinder on the first four refills each year, which broadly corresponds to the average annual consumption of a typical Ujjwala household. As a result, such beneficiaries pay an effective price of Rs 642 per cylinder on those refills. This support remains unchanged," the Petroleum Ministry said.
"Even a non-PMUY household pays about Rs 700 less than the market-linked cost of a cylinder. Retail prices vary marginally across locations due to distribution costs."
The ministry noted that households are shielded from the full impact of rising international costs because the government continues to bear a substantial portion of the burden. During a period of sharp increases in global energy prices, these additional costs were absorbed upstream rather than being passed on to consumers.
As the conflict disrupted traffic through the Strait of Hormuz,through which roughly one-fifth of the world's oil and a significant share of India's energy imports pass, most commercial movement in the waterway came to a near standstill. Approximately 54 per cent of India's LPG consumption depended on supplies routed through the Strait, making the country's cooking gas supply particularly vulnerable to the disruption.
"A range of measures was undertaken to secure supplies during the disruption. On the supply side, domestic LPG production was increased by more than 60 per cent, from about 32 TMT to approximately 52 TMT, to compensate for constrained imports. Sustained coordination ensured that LPG-laden vessels continued to move through the Strait of Hormuz. India facilitated the movement of the largest number of such vessels among all countries and did so without paying any toll," the Petroleum Ministry said.UNI VK AAB
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