Madhya Pradesh slashes LPG Prices before Anticipated State Elections
Ahead of anticipated state elections in November, Madhya Pradesh has announced a significant reduction in LPG prices for 14.2kg residential cylinders. Originally priced at Rs 903 by oil marketing companies (OMCs) in late August, the price is now set at Rs 450 ($5.41), a drop of Rs 453.
This move emerges against a backdrop of escalating inflationary pressures in the state and nationwide, with the governing BJP party facing mounting competition from opposition parties. Although the exact dates for the state elections in Madhya Pradesh haven't been confirmed, November seems probable.
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Chief Minister Shivraj Singh Chouhan specified that this reduced rate would benefit those enrolled in the Ladli Behna Yojana, a scheme aimed at assisting women in distress, as well as beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY), a subsidy initiative for low-income households. However, this discounted rate is valid for only one refill each month.
To facilitate this price reduction, the BJP-led state government has absorbed the cost since 1 September. This means that beneficiaries initially pay the standard rate for the gas cylinder, after which the price difference is refunded to their bank accounts by the government or OMCs. Any future alterations in LPG pricing by OMCs will be accounted for in the refund amount.
Recent data reveals an upward trend in inflation in India. The consumer price index inflation reached a 15-month peak at 7.44% in July, primarily due to a spike in food and vegetable prices, as per the Ministry of Statistics and Programme Implementation's data from mid-August. However, this rate saw a slight dip to 6.88% in August. Additionally, in a strategic move leading up to the general elections anticipated for April-May 2024, the BJP had earlier declared that state-operated refiners would lower LPG prices for households by Rs200 this month.
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According to the article by Procurement Resource, as state elections approach in Madhya Pradesh, India, the government has slashed LPG prices by Rs 453, offering a 14.2kg cylinder for 450 rupees ($5.41). This price cut, in the face of rising inflation and political competition, aims to alleviate the financial burden on citizens. While beneficiaries of welfare schemes like Ladli Behna Yojana and PMUY benefit from this reduction, they'll initially pay the full price, later receiving a refund. Amidst inflation touching 7.44% in July, this move also precedes the larger general elections slated for 2024.
