In a significant relief measure for consumers, India's petroleum minister, Hardeep Puri, revealed on Wednesday (August 30) that oil marketing companies (OMCs) will be taking on the responsibility of implementing a substantial reduction of Rs 200 in the price of LPG (liquefied petroleum gas) cylinders.
In an exclusive interview with CNBC-TV18, Puri emphasised the OMCs' role as good corporate citizens. He noted that the OMCs are prepared to absorb the cost due to their robust financial positions, and their cooperation will ensure that the benefits of this decision are extended to the masses.
Puri stated, "The OMCs have demonstrated their commitment to being responsible corporate citizens. This joint effort between the government and the corporations will greatly benefit consumers and the overall economy. By cushioning the price cut, OMCs are shielding the economy from potential shocks while maintaining a strong track record of sustainability."
He elaborated on the importance of this move, reflecting on the drastic improvement made since 2014 when a mere 14 crore connections existed. The government's efforts have led to a remarkable expansion of this vital service, benefitting citizens across the country.
"Today, we have approximately 32 crore connections. In 2014, the number of connections were about 14 crore, 45 percent of our population that is a population of users were outside this LPG cylinder system."
"Cylinders were difficult to get, there was a black market on the cylinders, people had to bribe their way through the supply man etc., all kinds of things happened. We brought that from 14 crore connections to 32 crore connections," he informed.
The reduction in LPG cylinder prices holds substantial significance for Ujjwala beneficiaries, whose numbers are expected to rise from 9.6 crore to 10.35 crore, Puri noted.
"For instance, regarding gas pricing for natural gas, we have introduced formulae to protect the interests of the consumer. Specifically, we have implemented a Rs 200 direct reduction for every LPG cylinder.
Additionally, the beneficiaries of the Ujjwala Scheme, up until yesterday, numbered 9 crore and 60 lakh. All of them were receiving a Rs 200 payment under Direct Benefit Transfer (DBT), which was being deposited directly into their accounts."
"For these beneficiaries, the total benefit amounts to Rs 400, which includes the Rs 200 reduction in gas cylinder cost, bringing it down from Rs 1,100 to Rs 900, and a decrease in their subsidies to Rs 700," minister added.
Puri also shed light on the comprehensive approach to this reduction, stating, "The Rs 200 cut applies universally to all LPG cylinders for 33 crore beneficiaries, including those under the Ujjwala scheme. The scheme has been instrumental in reducing financial burdens for these beneficiaries, making clean energy more accessible."
First Published: Aug 30, 2023 9:15 PM IST
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