New Delhi: On the occasion of festival Raksha Bandhan, the Government of India has given a huge relief to common people by cutting the prices of domestic LPG cylinder upto Rs 200. The Cabinet's decision will put a burden of Rs 7,500 crore on the exchequer. 


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"PM Modi has decided Rs 200 reduction in the price of domestic LPG cylinders, for all users...this is a gift from PM Narendra Modi, to the women of the country, during the occasion of Raksha Bandhan", says Union Minister Anurag Thakur


The minister also said the Centre will also provide 75 lakh new LPG connections under Ujjwala scheme. 


The Centre’s decision to lower the rates of LPG cylinder is crucial ahead of Assembly elections later this year in five states – Rajasthan, Chhattisgarh, Madhya Pradesh, Telangana and Mizoram.  


The 14kg LPG cylinder rates were revised in March last time when Rs 50 was increased by oil marketing companies (OMCs). Meanwhile, the 19 kg or commercial cylinder prices were decreased by Rs 100 in August.


The rates for LPG cylinder for the big cities from March – Delhi, Mumbai, Chennai, and Kolkata are:


A 14 kg LPG cylinder costs as of now


Delhi - Rs 1,053


Mumbai – Rs 1052.50


Chennai – Rs 1,068.50


Kolkata – Rs 1,079


The decision was taken in a cabinet meeting chaired by Prime Minister Narendra Modi. Five states - Rajasthan, Madhya Pradesh, Telangana, Chhattisgarh and Mizoram will go to the polls by the end of this year while the Lok Sabha elections will take place early next year.