Ahead of Assembly elections, Gujarat cuts VAT on CNG & PNG; to give two free cylinders to Ujjwala beneficiaries

The government’s decision on free cooking gas cylinders to beneficiaries of the Pradhan Mantri Ujjwala Scheme comes at a time when the prices of such cylinders have touched ₹650 recently.

Ahead of the announcement of the Assembly poll dates in Gujarat, the State government on Monday, October 17, 2022, slashed Value Added Tax by 10% on Compressed Natural Gas (CNG) and Piped Natural Gas (PNG). It also announced that two cooking gas cylinders would be given free every year to 38 lakh beneficiaries who have got gas connections under the Centre’s Ujjwala scheme.

The government’s decision on free cooking gas cylinders to beneficiaries of the Pradhan Mantri Ujjwala Scheme comes at a time when the prices of cylinders have touched ₹650 recently.

According to government calculations, the two free cylinders per year to the Ujjwala beneficiaries would cost the exchequer ₹.1,650 crore annually.

“The measures to provide two free cylinders will give huge relief to 38 lakh housewives who are beneficiaries of the Ujjwala scheme in the State,” said Jitu Vaghani, the State government spokesman and Education Minister.

The announcement of reduction in VAT on CNG and PNG would give relief to consumers consisting of autodrivers and other vehicle owners who use CNG as fuel and households who use PNG in cities like Ahmedabad.

The government has brought down VAT from 15% to 5% on gas fuel. There are almost 14 lakh vehicles using CNG as fuel and 24 lakh consumers using PNG across the State. Now, prices of CNG and PNG would be reduced by ₹5 per kg.

The government’s decision to slash VAT and provide cylinders has come in the wake of the Congress announcement to provide cylinders at ₹500.