Concerned about Rising LPG Cylinder Prices? The government data indicates’record-high demand’ for poll subsidies

The increased federal and state subsidies have caused the demand for cooking gas cylinder refills to surge to all-time highs in recent months. It is anticipated that these replenishment tendencies would continue to rise as the state and national elections get closer.

According to government statistics acquired by the publication, average daily refills surpassed 11 lakh in September for the first time. This occurred when the Union cabinet approved a further increase in the Ujjwala recipients’ subsidy from Rs 200 to Rs 300 per cylinder, covering 9.6 crore of them.

Although October’s average was somewhat lower than September’s (11.1 lakh per day), the administration still anticipates a significant increase in cooking gas usage in the next months due to subsidies offered by the Center and many states ahead of elections.

2020 saw a surge in consumption as a result of the Covid-19 alleviation package’s advantages. September and October of that year had an average of 9.9 lakh and 8.1 lakh refills each day, respectively.

Benefits of Gas Cylinders by States

• As a “Diwali gift,” Uttar Pradesh is giving out free cylinders to Ujjwala recipients.

• The BJP administration in Madhya Pradesh, where elections are imminent, would provide women cylinders for Rs 450.

• The Congress party promised in its platform to provide MP, Chhattisgarh, and Rajasthan with discounted gas at a cost of Rs 500 per cylinder.

Probably more demand from lower-class households

The government and oil corporations anticipate an increase in demand from low-income families in the next months as a result of the pledges.

The research noted that even though the Modi administration has been providing free gas connections, the number of refills was anticipated to be approximately 3.7 cylinders yearly since impoverished families sometimes found it difficult to pay in a lump sum cash all at once.

It said that more than a crore homes are thought to have gone without a refill during the most recent fiscal year, with exorbitant costs being cited as a primary contributing reason.

However, the average is anticipated to increase to between 4.5 and 5 cylinders by the following year, according to sources cited by the magazine. They said that efforts are being made by the government and oil firms to raise the figure even higher.

“The new homes have low consumption in the first few months since they don’t totally give up burning charcoal or firewood. Consumption tends to increase as people get used to cooking gas, although it occurs gradually, the report’s source said.

The analysis stated that while the subsidies would place a financial strain on the exchequer, the action is anticipated to decrease the carbon footprint and the health care costs for a number of low-income families.