Mint Explainer: Why the government cut LPG prices by ₹ 200
Live MintThe Union cabinet on Tuesday approved a reduction ₹200 on domestic liquified petroleum gas cylinders or cooking gas. Similarly, domestic LPG prices in Kolkata, Mumbai and Chennai stood at ₹929, ₹902.50 and ₹918.50, respectively, after the price cut. Government data showed that during the period under review, LPG prices in the national capital rose by ₹359 from ₹744 to ₹1,103 per cylinder in the national capital. Further, as the increase in international prices has not been fully passed on to consumers, OMCs suffered under-recoveries of around ₹28,000 crore on sales of domestic LPG. Further, during the Covid-19 pandemic, the Centre had also provided about 14.17 crore free LPG refills to Pradhan Mantri Ujjwala Yojana households under Pradhan Mantri Gareeb Kalyan package during 2020.