Now only 4 subsidized cylinders will be available in the year under Ujjwala scheme, new order of the government amid Middle East crisis. – ..
A big news is coming out which will affect the kitchen budget of crores of poor families and housewives of the country. The Central Government has made a big and shocking change in the subsidy rules of LPG Gas Cylinder under its ambitious ‘Pradhan Mantri Ujjwala Yojana’ (PMUY). According to the new decision of the government, now only 4 cylinders will be given to the beneficiaries of Ujjwala Yojana in a year at a special subsidized rate. Let us tell you that under this scheme, about 10.60 crore LPG connections have been distributed across the country so far, which earlier used to get the benefit of additional subsidy of Rs 300 on 9 cylinders every year. This strict step of the government is going to have a direct impact on the pockets of poor families.
Due to the war raging in West Asia, the burden on oil companies increased, hence the government had to take this step.
After all, the reason why the government had to make such a drastic reduction in the number of subsidized cylinders has also come to light. In fact, due to the ongoing severe geopolitical tension and war situation in West Asia (Middle East crisis) at the international level for the last three months, the cost of LPG has increased drastically at the global level. Due to this crisis, the burden of financial losses on India’s government oil marketing companies (OMCs) was continuously increasing. The government’s argument is that at present the overall burden of petroleum subsidy on the country has increased a lot, to control which it became extremely necessary to make this major change in the scheme.
Know now at what rate cylinder, mango and Ujjwala customers will get the new price mathematics
After the implementation of this new rule, the equation of prices of gas cylinders received by Ujjwala beneficiaries will completely change. According to the Petroleum Ministry, now Ujjwala customers will get the first 4 cylinders of the year at a discounted price of Rs 642, but as soon as they book the fifth or next cylinder, they will have to pay the normal price of Rs 942 for the remaining cylinders. However, the government has clarified that LPG customers of both general and Ujjwala categories are still indirectly getting the benefit of the basic subsidy of about Rs 700 per cylinder, as the actual cost of the gas is much higher than this.
Official’s big claim – Ujjwala customers use only 4 to 5 cylinders in a year anyway
In an important press conference organized by the government regarding the West Asia crisis, Praveen Khanuja, Additional Secretary, Ministry of Petroleum and Natural Gas, put forward the practical data behind this decision. He told that as per our internal analysis and data, most of the beneficiary families of Ujjwala scheme consume only 4 to 5 cylinders in a year on an average. Therefore, reducing the number of subsidized cylinders to 4 in a year will not make a huge or adverse difference to the budget of most poor families at the grassroots level.
Oil companies are facing huge losses, forced to sell a cylinder worth Rs 1600 for Rs 942 in Delhi.
Additional Secretary of the Ministry, Praveen Khanuja, while disclosing the financial crisis of the oil companies, said that due to the conditions of the international market, at present the actual cost of a 14.2 kg LPG cylinder is about Rs 1600 to the oil companies. Despite this, on the instructions of the government, this cylinder is being made available to a common customer in the country’s capital Delhi for only Rs 942. Furthermore, the Petroleum Ministry also pointed out that state-owned oil companies are currently facing huge ‘underrecovery’ (losses due to selling below cost) of Rs 6 per liter on petrol and Rs 30 per liter on diesel. To compensate for this loss, during the last two financial years, the government has also given a huge financial assistance of Rs 52,000 crore to the oil companies from the general budget.
India’s route changed due to closure of Hormuz waterway, gas is coming from Oman and America
Ujjwala Yojana was started with the aim of providing clean fuel to the rural women of the country by liberating them from poisonous smoke like wood, dung cake and coal. But due to the West Asia conflict, the global supply chain has been badly disrupted. India used to import about 70 percent of its LPG requirement through the famous ‘Strait of Hormuz’, which is currently completely blocked due to the war. To deal with this big challenge, India has changed its strategy and has now started importing LPG from safe countries like Oman, America and Australia.
Country’s refineries increased domestic production by 60 percent, bumper booking of 42 lakh cylinders daily
Amid this huge supply crisis, India’s oil refineries have also taken LPG production as their top priority to strengthen the energy security of the country. According to the latest data released by the Petroleum Ministry, the country’s domestic refineries are producing 60 percent more LPG today than before the West Asian conflict started. The improvement in the situation can be gauged from the fact that during the last four days, an average of 42 lakh LPG cylinders are being booked every day in the country, while oil companies are providing uninterrupted supply of 44 lakh cylinders daily in the market. These figures clearly show that compared to the initial days of the war, the supply chain of LPG in the country has now become much stronger and stable.
Comments are closed.