An Unkind Hike

The steep hike in prices of the LPG cylinder, both for domestic consumers and the commercial ones, has come as a bolt from the blue. The hike is excessive, arbitrary and intended to benefit the oil marketing companies.

The timing is of significance, soon after the voters in the three states in the North-East have voted for the election of the respective Assemblies and the results of the outcome were awaited. There does not seem to be any rationale for Rs. 50 hike for the domestic consumers and Rs. 350 for commercial consumers preponderantly the eateries as international prices have shown a softening trend over the last six months.

It is already over two years since the Union Government stopped remitting the subsidy amount of around Rs. 200 in the bank accounts of each of the individual domestic consumers. In fact the entire digital infrastructure for the Aadhaar card was raised merely to ensure that the consumers received the subsidy amount directly into their accounts and no foul play was committed by the gas distribution companies or the delivery personnel.

With the latest hike the domestic cylinder prices have gone up by over 170 percent over the prices the consumers were paying when the Narendra Modi government secured the reins of the administration in Delhi promising achche din for the people. In absolute terms, the consumers will be shelling out Rs. 1103 for a 14.2 kg refill from start of this month against Rs. 410 in 2014. No wonder then why the enthusiasm for using the emission-less LPG cylinder among beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) is slackening. The scheme was launched with great fanfare claiming relief for the poor households in 2014.

Latest study suggests that an average household which uses only LPG for cooking requires at least six or seven cylinders per year, took four or fewer refills in 2020-21. A Business Standard study reveals that as on February 2 this year, out of the total 95.8 million consumers under PMUY, 9.6% of the beneficiaries took no refills and 11.3% took only one and 65.5% took only four or fewer refills in 2021-22.

The data testifies that the increase in the prices, besides being a strain over the economy of average household, is acting as a disincentive for the poor families to opt for the fuel that was offered as a carbon-mitigating initiative. It defeats the very objective with which the Union Government introduced the PMUY scheme. The frequent hikes in prices of essentials shows the government is increasingly turning a deaf ear to the plight of vulnerable sections. Those in power should realise only a responsive govt can earn people’s love and goodwill.