data | LPG price crosses ₹1,050, drop in cylinder refills among PMUY consumers

The rise in prices in LPG cylinders has prompted consumers to reduce the number of LPG refills, with 5% of PMUY beneficiaries refilling just once per year in FY22.

The rise in prices in LPG cylinders has prompted consumers to reduce the number of LPG refills, with 5% of PMUY beneficiaries refilling just once per year in FY22.

14.2 kg cylinder price It has increased to ₹1,053 in July 2022. Although a subsidy of ₹200 per cylinder was announced recently Beneficiaries of Pradhan Mantri Ujjwala YojanaThe subsidized rate of ₹853 is still double the amount paid in 2015. In fact, the government’s expenditure on LPG subsidy has fallen to only ₹242 crore in FY22. The steep rise in retail gas prices is also due to rising international prices of LPG which is now 80-90% of the retail cylinder price. The price hike has prompted consumers to reduce the number of LPG refills with 5% of PMUY beneficiaries filling only once per year in FY22.

thousand and counting

Between May 2020 and May 2022, no subsidy was announced by the government for domestic cylinders in Delhi. Following the sharp rise in the prices of non-subsidised LPG, consumers are paying higher market rates, which were average in May 2022. ₹999.5 per 14.2 kg cylinder in Delhi.

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international value

At present, over 80-90% of the LPG retail price in Delhi is determined by the International Free On Board (FOB) price of LPG. The FOB is the weighted average of the Saudi Aramco contract price for Butane (60%) and Propane (40%). Apart from the base price, factors like import duty, bottling fee, freight, delivery charges, GST and distributor commission determine the price of LPG.

subsidy exemption

The chart shows the amount of subsidy on LPG given by the central government during each of the last five years. The amount came down to ₹ 242 crore in FY 22 from ₹ 37,209 crore in FY 19

low refill

The graph shows the percentage of PMUY customers who refilled LPG once, twice and thrice in FY 2011 and FY 2012.

Source: Lok Sabha, PPAC

Read also: data | How effective has been the Pradhan Mantri Ujjwala Yojana