Official data accessed by TOI shows that for the first time, average daily refills crossed 11 lakh in September, days after the Union cabinet cleared a subsidy of Rs 200 per cylinder for 9.6 crore Ujjwalabeneficiaries, which was subsequently increased to Rs 300.While the average for October was a little lower at 10.3 lakh a day (see graphic), 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. In 2020, average consumption had increased due to benefits available under the Covid-19 relief package.
States such as UP have gone ahead and announced free cylinders as ‘Diwali gift’ for Ujjwala beneficiaries, while BJP government in poll-bound MP will provide cylinders at Rs 450 to women. In its manifesto in MP, Chhattisgarh and Rajasthan Congress has vowed to provide subsidised gas at Rs 500 a cylinder.
Amid the promises, government and oil companies see the demand from poor households rising in coming months. 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. 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, sources said, adding 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,” a source explained. 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.