Rs 50 LPG Price Hike: The Economic and Social Impact on Low-Income Families

The recent hike of Rs 50 per LPG cylinder has raised alarm bells for low-income households across India. While LPG has long been considered a cleaner alternative to traditional cooking fuels like wood and coal, the rising cost of this essential fuel threatens to undo much of the progress made in terms of making clean cooking fuel accessible to all.

For low-income families, this price increase could mean more financial strain. Many of these families, especially in rural areas, rely on subsidies to make LPG affordable. The increased price could push many households back to using firewood or kerosene, both of which are not only less environmentally friendly but also contribute to respiratory diseases and other health problems, particularly for women and children who spend more time in the kitchen.

For the Indian government, this poses a significant challenge. The aim of the Pradhan Mantri Ujjwala Yojana, which provides free LPG connections to women from below the poverty line, was to reduce the health hazards associated with cooking with biomass fuels. However, with the price of LPG rising, many beneficiaries may find it increasingly difficult to afford refills, which could ultimately lead to the abandonment of their LPG connections.

This price hike comes at a time when inflation is already putting pressure on household budgets. Families are facing higher costs for food, transport, and other essential services, and now, the cost of cooking fuel is following suit. While the government has been working to ensure access to clean cooking fuel for all, rising LPG prices complicate these efforts, especially for those at the lower end of the income spectrum.