The Union government is considering phasing out cooking gas cylinders in the long run in regions adequately covered by piped natural gas (PNG).
The government spends around ₹6,100 crore in welfare subsidies for liquefied petroleum gas (LPG) customers under the Pradhan Mantri Ujjwala Yojana (PMUY). It has also made a budgetary outgo of about ₹22,000 crore for the three state-run oil marketing companies that have had to bear losses as they could not increase gas prices in line with the international prices in the past year.
“Government has asked the PNG industry players to see if a sunset timeline can be fixed on the use of LPG for areas which have adequate gas supplies through the PNG network," said a person aware of the development.
The move comes against the backdrop of declining demand for PNG in the past year. PNG prices are entirely market-driven. Although LPG prices have also been rising, they are subsidized because they benefit economically depressed classes.
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