{"id":23695,"date":"2023-08-31T05:01:44","date_gmt":"2023-08-31T05:01:44","guid":{"rendered":"https:\/\/blog.researchandranking.com\/?p=23695"},"modified":"2023-09-01T18:49:23","modified_gmt":"2023-09-01T13:19:23","slug":"prices-of-lpg-cylinders-slashed","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/prices-of-lpg-cylinders-slashed\/","title":{"rendered":"Prices of Domestic LPG Cylinders Slashed Amidst Soaring Inflation"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<h2 class=\"wp-block-heading\">Introduction<\/h2>\n\n\n\n<p>In a recent turn of events, the government has taken a noteworthy stride by announcing a substantial reduction in the prices of domestic LPG cylinders, effectively cutting costs by Rs 200. This strategic move is a relief for Indian households grappling with the challenges posed by the surging <a href=\"https:\/\/www.equentis.com\/blog\/10-common-effects-of-inflation-on-the-economy\/\">inflation<\/a> in the country. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"LPG price cut by \u20b9200 per cylinder | LPG Cylinder Price Cut | LPG\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/4OAHVoXysUw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>The latest consumer price index data for July has unveiled a staggering inflation rate of 7.44%, surpassing the already concerning 4.81% recorded in June. The primary driving force behind this inflation surge has been the exponential rise in the prices of essential food commodities such as cereals, onions, and tomatoes. <\/p>\n\n\n\n<p><strong>Battling High Inflation: A Glimpse into the Current Scenario<\/strong><\/p>\n\n\n\n<p>As the nation witnessed a consistent surge in consumer prices, concerns about the financial stability of households, especially those with lower incomes, have escalated. The inflationary pressures have significantly impacted the affordability of basic necessities, posing a direct challenge to the overall economic well-being of the population.<\/p>\n\n\n\n<p><strong>Unveiling July&#8217;s Consumer Price Reading<\/strong><\/p>\n\n\n\n<p>The consumer price index (CPI) is a critical indicator of inflation and economic stability. The CPI reading for July sent shockwaves across the nation, recording an alarming 7.44% inflation rate. This notable spike from the previous month&#8217;s 4.81% indicates the growing economic challenges individuals and families face. <\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-129.png\" alt=\"\" class=\"wp-image-23706\" style=\"width:567px;height:304px\" width=\"567\" height=\"304\" title=\"\" srcset=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-129.png 940w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-129-300x161.png 300w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-129-768x412.png 768w\" sizes=\"(max-width: 567px) 100vw, 567px\" \/><figcaption class=\"wp-element-caption\">Source: MOSPI<\/figcaption><\/figure>\n\n\n\n<p><strong>Easing the Burden: Government&#8217;s Move to Slash LPG Cylinder Prices<\/strong><\/p>\n\n\n\n<p>In a strategic bid to provide some respite amidst the mounting inflation, the government has proactively reduced the prices of LPG cylinders by Rs 200. This significant reduction is set to benefit a staggering 330 million users nationwide, encompassing a broad spectrum of households.<\/p>\n\n\n\n<p><strong>Aiding Low-Income Families: Key Takeaways<\/strong><\/p>\n\n\n\n<p>The far-reaching implications of this decision are particularly significant for low-income families disproportionately affected by the rising cost of living. The reduction in LPG cylinder prices holds the potential to alleviate some of the financial burden they have been grappling with.<\/p>\n\n\n\n<p><strong>PM Ujwala Scheme: Doubling the Relief<\/strong><\/p>\n\n\n\n<p>Adding another relief layer, the government has extended its support to users enrolled under the PM Ujwala scheme. Those currently availing a subsidy of Rs 200 will now be entitled to an additional subsidy of Rs 200, effectively totaling a subsidy of Rs 400. This move ensures that the benefits of reducing LPG cylinder prices are maximized for those in need. <\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-128.png\" alt=\"\" class=\"wp-image-23703\" style=\"width:522px;height:323px\" width=\"522\" height=\"323\" title=\"\" srcset=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-128.png 937w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-128-300x186.png 300w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-128-768x475.png 768w\" sizes=\"(max-width: 522px) 100vw, 522px\" \/><figcaption class=\"wp-element-caption\">Source: <strong>IOCI, Business Standard<\/strong><\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-secondary-color\">Key Takeaways<\/mark><\/h3>\n\n\n\n<p>The government&#8217;s decision to lower LPG cylinder prices addresses the immediate economic concerns of households and carries a strategic significance in the political landscape. This move comes ahead of crucial state elections and the general elections, underscoring the government&#8217;s commitment to addressing the needs and concerns of the population.<\/p>\n\n\n\n<p>As the government takes a proactive stance in the face of soaring inflation, reducing domestic LPG cylinder prices by Rs 200 marks a significant stride towards providing much-needed relief to households nationwide. This move offers financial respite to individuals and serves as a testament to the government&#8217;s dedication to mitigating its citizens&#8217; economic challenges.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQs<\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1693457193113\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>How will the reduction in LPG cylinder prices impact consumers?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Reducing prices will financially relieve consumers, particularly those with lower incomes, making essential cooking fuel more affordable.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1693457201669\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>Will the subsidy under the PM Ujwala scheme be increased for all beneficiaries?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, users under the PM Ujwala scheme will receive an additional subsidy of Rs 200, effectively doubling their relief.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1693457235892\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>How does the recent inflation rate compare to previous months?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The recent inflation rate of 7.44% for July is significantly higher than the 4.81% recorded in June, highlighting the growing economic challenges.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1693457253909\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>What motivated the government&#8217;s decision to reduce LPG cylinder prices?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The decision aims to relieve households grappling with high inflation and showcases the government&#8217;s commitment to addressing economic concerns.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1693457268835\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>How does this move tie into upcoming elections?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The reduction in LPG cylinder prices resonates positively with the population, enhancing the government&#8217;s image ahead of crucial state and general elections.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<h2 class=\"wp-block-heading has-text-align-center has-white-color has-midnight-gradient-background has-text-color has-background has-medium-font-size\">Bank Deposit Growth: A Six-Year High at 13.5%<\/h2>\n\n\n\n<p><strong>Introduction<\/strong><\/p>\n\n\n\n<p>A remarkable surge in credit growth has recently taken center stage, illuminating a positive trajectory for the economy&#8217;s overall health. Yet, a concerning dissonance has emerged \u2013 deposit growth appears to be trailing behind the brisk pace of credit expansion. This discrepancy raises alarms about potential impediments to the expansive journey of loans and economic development.<\/p>\n\n\n\n<p>However, a glimmer of optimism prevails. The chasm between deposit and loan growth is narrowing, evoking a shift in the financial landscape. As evidenced by the chart below, deposits have surged by an impressive 13.5% year-on-year, culminating in the fortnight ending on August 11. Remarkably, this upswing catapults the deposit growth beyond the 12.5% threshold for the first time since 2017.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-130.png\" alt=\"\" class=\"wp-image-23709\" style=\"width:630px;height:303px\" width=\"630\" height=\"303\" title=\"\" srcset=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-130.png 940w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-130-300x144.png 300w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-130-768x369.png 768w\" sizes=\"(max-width: 630px) 100vw, 630px\" \/><figcaption class=\"wp-element-caption\">Source: RBI<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Factors Fueling Deposit Growth<\/h3>\n\n\n\n<p>The recent months witnessed deposit growth lagging behind credit expansion by nearly fifty percent. Fortunately, the winds of change are sweeping through the financial domain. The driving forces behind this surge in deposit growth are multifaceted:<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-132.png\" alt=\"\" class=\"wp-image-23713\" style=\"width:534px;height:347px\" width=\"534\" height=\"347\" title=\"\" srcset=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-132.png 940w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-132-300x195.png 300w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-132-768x498.png 768w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-132-850x550.png 850w\" sizes=\"(max-width: 534px) 100vw, 534px\" \/><figcaption class=\"wp-element-caption\">Source: RBI<\/figcaption><\/figure>\n\n\n\n<p><strong>1. Rising Interest <a href=\"https:\/\/www.equentis.com\/blog\/old-tax-regime-slabs\/\">Rates<\/a><\/strong><\/p>\n\n\n\n<p>Elevating interest rates on deposits plays a pivotal role in boosting deposit growth. Savvy depositors are enticed by the prospect of augmented returns on their funds, thus invigorating the overall deposit landscape.<\/p>\n\n\n\n<p><strong>2. Demise of Rs 2,000 Denomination Notes<\/strong><\/p>\n\n\n\n<p>The discontinuation of the Rs 2,000 denomination notes constitutes an unforeseen catalyst for deposit growth. As the circulation of these notes tapers, individuals and entities alike are prompted to channel their funds into deposits, contributing to the surge.<\/p>\n\n\n\n<p>3. <strong>Unpacking Credit Growth<\/strong><\/p>\n\n\n\n<p>Shifting the spotlight to credit growth, non-food bank credit has witnessed an extraordinary surge of 19.7% year-on-year up to August 11. This meteoric rise is primarily attributed to the merger of HDFC and HDFC Bank Ltd. A noteworthy revelation arises \u2013 excluding this amalgamation, the credit growth figure would stand at 14.8%, according to the meticulous analysis by CARE ratings.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-131.png\" alt=\"\" class=\"wp-image-23712\" style=\"width:571px;height:361px\" width=\"571\" height=\"361\" title=\"\" srcset=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-131.png 981w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-131-300x190.png 300w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-131-768x485.png 768w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2023\/08\/image-131-600x380.png 600w\" sizes=\"(max-width: 571px) 100vw, 571px\" \/><figcaption class=\"wp-element-caption\">Source: RBI<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-secondary-color\">Key Takeaways<\/mark><\/h3>\n\n\n\n<p>While credit growth maintains its supremacy over deposit growth, a narrowing of the gap has come into play over the past several quarters. This intriguing evolution underscores the dynamic nature of the financial realm, where growth patterns intertwine and influence each other&#8217;s trajectories.<\/p>\n\n\n\n<p>The resurgence of deposit growth to a six-year high at 13.5% is a pivotal testament to the dynamic nature of the financial landscape. The orchestrated rise, influenced by factors such as interest rates and changes in currency circulation, signifies a promising stride towards a harmonious balance between credit and deposit growth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQs<\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1693459574887\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What is the significance of deposit growth for the economy?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Deposit growth reflects the influx of funds into financial institutions, directly impacting their lending capacity and contributing to overall economic growth.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1693459587465\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">How has the discontinuation of Rs 2,000 denomination notes affected deposit growth?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The discontinuation has nudged individuals and entities to divert funds from cash holdings to deposits, bolstering deposit growth.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1693459607570\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What role does interest rate play in deposit growth?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Higher interest rates on deposits attract more depositors, incentivizing them to allocate their funds to bank deposits.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1693459626250\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">How does credit growth influence the economy?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Credit growth indicates increased borrowing and lending, which drives consumption, <a href=\"https:\/\/www.equentis.com\/blog\/mukul-agrawal-portfolio-shareholdings-investments-all-you-need-to-know\/\">investments<\/a>, and overall economic activity.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1693459643258\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What implications does the narrowing gap between credit and deposit growth hold?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The narrowing gap suggests a potential equilibrium between borrowing and saving trends, which could translate to a more balanced financial landscape.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><strong>Read more: \u00a0<a href=\"https:\/\/timesofindia.indiatimes.com\/blogs\/voices\/long-term-investing-helps-create-life-changing-wealth\" target=\"_blank\" rel=\"noreferrer noopener\">How Long-term investing helps create life-changing wealth \u2013 TOI<\/a>.\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction In a recent turn of events, the government has taken a noteworthy stride by announcing a substantial reduction in [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":23701,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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