The Indian state of Madhya Pradesh has reduced LPG prices to 450 rupees ($5.41) for a 14.2kg residential cylinder, ahead of state elections likely in November.
This is a reduction of Rs453 from the Rs903 set by oil marketing companies (OMCs) for the state in late August.
The move comes as the ruling BJP party faces tight competition in the state from opposition parties because of surging inflation in the state and country. No dates have been set yet for the elections in Madhya Pradesh but they are likely to take place in November.
The lower price is applicable to beneficiaries of Madhya Pradesh's Ladli Behna Yojana scheme designed to help women in need and beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) subsidy scheme for low-income households, chief minister Shivraj Singh Chouhan said, adding that the reduced price is applicable only for a single refill every month.
The BJP-led state government has been bearing this cost since 1 September, meaning beneficiaries will have to pay the usual rates for a gas cylinder and then wait for the government or OMCs to transfer the difference into their bank accounts.
If OMCs change LPG prices in the coming months, the difference to be deposited into bank accounts will be adjusted accordingly, Chouhan added.
India's consumer price index inflation surged to a 15-month high of 7.44pc in July, driven by higher food and vegetable prices, according to data from the Ministry of Statistics and Programme Implementation on 14 August. It fell slightly to 6.88pc in August, latest data show.
The ruling BJP previously announced that state-controlled refiners will cut LPG prices for the residential market by Rs200 this month with an eye on general elections next year, likely to be held in April-May 2024.
