The Indian government has extended the free LPG scheme under a state-subsidised PMUY scheme as part of an INR1.7 trillion ($22.6 billion) coronavirus relief. The program was launched in April to provide one free 14.2-kg cylinder each month until June. However, it is now extended by three months to September 30 after some beneficiaries of the program used the deposited money to buy other essential items such as food.
The three-month extension is expected to boost India’s LPG demand and imports. According to preliminary data from India’s oil ministry, the country’s LPG demand rose by 13% in May from a year earlier amid a nationwide lockdown to battle the coronavirus pandemic. LPG consumption reached 2.32 million tons that month, compared to 2.05 million tons a year earlier. Meanwhile, LPG imports surged nearly 50% year-on-year to 1.51 million tons in May.
The prices of non-subsidised LPG in India in July were mostly unchanged from June. A non-subsidised 14.2-kg LPG cylinder costs INR594 ($7.9) in Delhi this month, compared to INR593 in June. The subsidy program transferred INR97 billion ($1.4 billion) to beneficiaries’ bank accounts, with nearly 120 million of 14.2-kg cylinders delivered.
