The move comes as the central government faces growing criticism over rising inflation and its impact on households.

“On the occasion of Raksha Bandhan and Onam, the government has decided to reduce the price of domestic cylinders by ₹200,” said information and broadcasting minister Anurag Thakur. “This is a gift from Prime Minister Narendra Modi to the women of the country.”

At present, a 14.2kg LPG (liquified petroleum gas) cylinder costs ₹1,103 in Delhi. Effective Wednesday, the price will fall to ₹903.

The price reduction also applies to beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY). For beneficiaries of PMUY, the price will be ₹703. In March, the Centre had extended a ₹200 per LPG cylinder subsidy under the scheme.

“The government will also provide 7.5 million new LPG connections for free under the Ujjwala scheme,” Thakur announced. At present, there are 96 million beneficiaries of the scheme.

Oil marketing companies had in July raised the price of LPG cylinders by ₹50, adding to two increases in May.

The subsidy for PMUY beneficiaries was introduced in May 2022 as part of a series of steps announced by the government to give relief amid a rally in global energy prices.

The latest price cut will be a welcome relief for consumers at a time of rising inflation. Retail inflation in July reached 7.44% from 4.87% in June, with consumers facing a sharp 11.5% spike in food prices. This is the fastest pace of retail inflation since April 2022 and the first time since September 2022 that prices have scaled 7%. Rural residents faced a higher overall inflation rate of 7.63% in July, according to the National Statistical Office.

The Centre has been under severe criticism from the Opposition over the high inflation. The cut in LPG price also comes ahead of assembly elections in five states and general elections in 2024. Cooking gas is a politically sensitive commodity given its impact on household budgets.

Taking to social media site X, formerly known as Twitter, the primer minister said the move would help “my sisters” and make their life convenient.

“PM Sh @narendramodi Ji has taken the bold step of reducing LPG cylinder price by ₹200/cylinder for all LPG consumers (33 crore connections) PM Ujjwala Yojana consumers will continue to the get the subsidy of ₹200/cylinder in their accounts,” Hardeep Singh Puri, oil minister, said in a post on X.

Updated: 29 Aug 2023, 11:56 PM IST