The demand for cooking gas cylinder refills has reached record levels in recent months due to higher subsidy from the Centre and the states. This increase in refill trends is expected to further go up as both state and general elections draw near.
The Times of India accessed government’s official data which showed that for the first time, average daily refills crossed 11 lakh in September. This came after the Union cabinet cleared a subsidy of Rs 200 per cylinder for 9.6 crore Ujjwala beneficiaries, which was subsequently increased to Rs 300.
While the average for October was a little lower at 10.3 lakh a day (as compared to September’s 11.1 lakh), the government expects a substantial pick up in consumption of cooking gas in coming months as several states and Centre have announced subsidies ahead of elections, TOI stated.
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In 2020, the consumption had increased due to benefits available under the Covid-19 relief package. The average daily refills that year was recorded at 9.9 lakh in September and 8.1 lakh in October.
Gas Cylinder Benefits by States
• Uttar Pradesh has announced free cylinders as ‘Diwali gift’ for Ujjwala beneficiaries.
• In poll-bound Madhya Pradesh, the BJP government will provide cylinders at Rs 450 to women.
• Congress, in its manifesto, has vowed to provide subsidised gas at Rs 500 a cylinder in MP, Chhattisgarh and Rajasthan.
More Demand Likely from Poor Households
According to TOI, the government and oil companies see the demand from poor households rising in coming months amid the promises.
Although gas connections have been provided for free by the Modi government, the number of refills was estimated at around 3.7 cylinders annually as poor households often found it tough to put in a lump sum amount in one shot, the report stated.
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It further said that during the last financial year, over one crore households are estimated to have not taken a single refill with high price seen to be a major factor.
The recent uptick is, however, expected to push up the average to anywhere between 4.5-5 cylinders by next year, the publication quoted its sources as saying. They added that the government and oil companies are looking at ways to increase the number further.
“In the initial months, the new households have low consumption as they do not completely switch off using firewood or charcoal. As they get used to cooking gas, consumption tends to pick up, but it happens with a lag,” TOI mentioned its source as explaining.
While the subsidies will force the exchequer to bear the subsidy burden, the move is expected to lower the carbon footprint and also reduce the health expenditure for several poor households, the report concluded.
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