With a cylinder of liquefied cooking gas (LPG) priced at ₹896 in Chennai this month, many low income families are finding it difficult to pay for the refills. From last month, the cost of a refill for domestic consumers increased by ₹57.50 with the subsidy component being ₹405 in October.
Chintal Sankar, a resident of Kalyanapuram in Vyasarpadi, said as her husband's earnings were not enough to run the family, she had to work. “We cannot pay such a large amount up-front even though we do get the subsidy amount a few days later,” she said.
For Shanti Rajaram, wife of an autorickshaw driver from Choolaimedu, rising petrol prices have only added to her burden.
“Everyone in my family has to work just to pay the rent and manage the household. With fuel prices on the rise daily, my husband hardly brings home any earnings. And if LPG prices too rise every month, it seems really unfair and will only add to the burden of families like ours,” she said.
In June, a refill had been priced ₹712.50, which meant an increase of over ₹180 in four months. Not just families but hostels, noon meal centres, small eateries and even iron wallas who get 5kg cylinders are affected by this price increase.
Free connections
The State-run oil marketing companies have been pushing a large number of free connections to tirbal people, under the Prime Minister's Ujwala scheme and those beneficiaries, including forest dwellers, SCs, STs, and people living in river islands.
Consumer activist T. Sadagopan said many households would not be able to pay the amount upfront and would switch back to their old ways of using the chullah. “Free LPG connections have been part of the votebank politics. Saying that this is clean fuel, the State governments have also cut down supply of kerosene. This increase would only push families that earn daily wages into bad debt, if they don’t have an alternative fuel,” he said and added that even for middle class families buying a gas cylinder at this rate would be difficult. “You can take public transport but cant avoid cooking at home since food is expensive in hotels. Where will the consumer go,” he asked.
Industry insiders said the tax component for LPG was now ₹44 a cylinder and at the rate of 3.5 lakh cylinders distributed a day on an average in the State in a month, the tax collection would be ₹38.50 crore, half of which would go to the State government and the other half to the Centre. Perhaps, this amount could be reduced to help consumers, said Govindarajan, a resident of West Mambalam.