The Indian government has announced a hike in domestic liquefied petroleum gas [LPG] cylinder prices by ₹50 in April 2025, directly impacting the household budgets of millions. With rising inflation and energy costs already high on the general public agenda, the timing of the increase was dire. The domestic consumers were not the only ones affected; beneficiaries of the Ujjwala Yojana have faced bright sunlight with new challenges. Let us discuss more about why this price hike was announced and its effects.
LPG Price Hike
With this price hike, 14.2 kg domestic LPG cylinder prices will go from ₹803 to ₹853 with effect from April 8, 2025. Ujjwala Yojana beneficiaries used to pay ₹500 per cylinder; they must now shell out ₹5502. The increase is a massive blow for domestic consumers, especially families already faced with rising food prices and energy costs.
What Is The Reason For Price Hike?
The main reason for the price hike was international LPG prices. LPG prices have risen from $415 per tonne to $712 per tonne in international markets. However, this bought-in rise had been offset by the government and oil marketing companies (OMCs) for quite some time before passing on such cost to average consumers. Now it seems some remedial measures have been taken to tackle the surging expenses and losses.
Impact On Ujjwala Yojana
As benefits to beneficiaries would be given under the present Ujjwala Yojana scheme, the lifting of this Rs.50 on gas prices would also make the cooking gas burden heavier for them. So far, Ujjwala Oylang-related beneficiaries had more than 30 crore families in their feed, and this hike has exerted extra pressure on their kitchen budgets.
Effect On Household Budgets
This price rise is, therefore, challenging, particularly for families from low and middle-income groups. These domestic consumers are now adjusting their monthly budget at the expense of savings and other expenditures.
Prospects For The Future
The government has announced that LPG prices will be reviewed every 15 days. Such a move is likely to instill further uncertainty among consumers, with many expecting a price for LPG to respond adversely, further raising uncertainties over such an assessment.
By April 2025, the hike in prices from LPG has thrown new challenges to domestic consumers. Besides affecting their budgets, it raises their concerns about energy costs.
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