Despite steep price rise LPG consumption up by 7.3% in 3 months

The LPG consumption during the last three months went up by 7.3% in comparison with the consumption during the same period of last fiscal. Indian Oil said the increase in LPG consumption has been recorded in both PMUY and non-PMUY beneficiaries, writes ETV Bharat's Krishnanand Tripathi.

New Delhi:The consumption of domestic gas has recorded an increase of 7.3% in the last three months despite a steep rise in the price of LPG cylinder, according to the latest data shared by the state-owned oil marketing companies.

Oil marketing companies attributed the increase in consumption to solid demand from PM Ujjwala Yojana (PMUY) beneficiaries who received subsidised gas connections under the government’s policy to provide clean cooking fuel to poor households.

Indian Oil said the increase in LPG consumption has been recorded in both PMUY and non-PMUY beneficiaries.

The oil-marketing giant said the improvement in LPG consumption, which was recorded in the first three months of the current fiscal due to free cylinders given to PMUY beneficiaries under PM Garib Kalyan scheme during the lockdown, also continued during the last three months, from December 2020 to February 2021.

The LPG consumption during the last three months went up by 7.3% in comparison with the consumption during the same period of last fiscal, it said.

However, the consumption amongst the PMUY consumers went up even more significantly, from 8.45 lakh metric tonnes to 10.1 lakh metric tonnes during the last three months, an increase of 19.5% in comparison with the consumption during the same period of last financial year.

Indian Oil's statement comes in the wake of reports that some PMUY beneficiaries have stopped taking refills due to a steep hike in LPG prices in recent months.

As reported earlier by ETV Bharat, the price of an LPG cylinder in Delhi has gone up by Rs 100 since the start of the year, while the overall hike since December last year is around Rs 175 per cylinder.

Earlier this week, petroleum minister Dharmendra Pradhan told the Lok Sabha that the price of domestic gas has doubled since the BJP came to power in May 2014.

The prices of petrol and diesel have also gone up by Rs 18-20 a litre in the last one year.

LPG penetration

State-owned oil-marketing companies said the reach of LPG in the country has improved from 55% in 2014 to 99% as on March 10, 2021, which is a result of behavioural change amongst the consumers.

While defending the use of LPG gas amongst the poor, Indian Oil said even if the upfront per kilogram cost of firewood is cheaper, LPG was a more economical fuel in the long-run when costs such as the total volume of fuel consumed and handling costs were factored in.

“Even at the current rates, LPG is cheaper than firewood and other traditional fuels in many states, largely on account of its overall heating efficiency,” Indian Oil said in a statement sent to ETV Bharat.

“Beyond the obvious health benefits and cost savings, the use of LPG by PMUY beneficiaries has led to reduction in time poverty,” it added.

The company said during the lockdown, a total of Rs 9,670 crore was transferred to the bank accounts of the PMUY beneficiaries directly.