LPG price cut: Sops only for Ujjwala consumers, no damages to OMCs

A day after the Center announced that the price of 14 kg liquefied petroleum gas (LPG) tanks had dropped by Rs 200, they clarified that the Oil and Gas Marketing Companies (OMCs) are not claiming compensation or subsidies to reduce the price. , as CNBC-Awaaz reports. .
According to some sources, given the CMO’s ability to maneuver on LPG, it is currently difficult to estimate the cost impact of lower prices. In addition, the Center will review the situation based on purchase prices and international prices to make a broader decision on price changes.
Furthermore, the latest funding announced is limited to 75 lakh new Ujjwala connections, sources have confirmed. The central government said it will provide 75 lakh new gas connections free of charge, to enable Pradhan Mantri Ujjwala Yojana (PMUY) related applications, bringing the total number of PMUY beneficiaries to 10.35 crore. The price of a bottle of LPG will be Rs 400 – Rs 200 at discount and Rs 200 as an existing allowance – for beneficiaries of the Ujjwala scheme. Meanwhile, non-Ujjwala consumers will only get a discount of Rs 200. On August 29, the Union Cabinet announced a reduction in LPG prices for 330 million domestic users, effective August 30.
Although crude oil prices have recovered from recent highs, LPG prices have remained flat. State-owned Petroleum Corporation of India, Bharat Petroleum Corporation and Hindustan Petroleum Corporation are expected to officially announce LPG price cuts. Currently, domestic LPG in New Delhi is priced at Rs 1,103/bottle of 14.2 kg. The LPG price was last changed on March 1, with an increase of Rs 50 per bottle.
The Union Budget for Fiscal Year 2024 has earmarked Rs 30,000 crore for capital support for state-owned refineries.