The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a targeted LPG subsidy of Rs 300 per 14.2 kg cylinder for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries during 2025-26. This subsidy will cover up to nine refills per year, with a proportionate amount for 5 kg cylinders. The government expects to spend Rs 12,000 crore on this subsidy scheme. PMUY, launched in May 2016, provides deposit-free LPG connections to adult women from poor households, ensuring safer cooking fuel access. As of July 1, 2025, approximately 10.33 crore PMUY connections exist across India. This targeted subsidy aims to make LPG affordable and maintain consistent use among beneficiaries.
PMUY: Empowering Women with Affordable LPG Connections
The Pradhan Mantri Ujjwala Yojana launched in May 2016 focuses on providing deposit-free LPG connections to women from economically weaker sections. The government supplies the cylinder, pressure regulator, safety hose, and installation free of cost, including the Domestic Gas Consumer Card (DGCC). Under Ujjwala 2.0, beneficiaries also receive the first LPG refill and stove free. The government bears all these costs to encourage safe cooking and reduce reliance on traditional fuels. This initiative ensures that poor households can switch to cleaner LPG fuel without financial burdens at the outset. The scheme has successfully empowered women and promoted cleaner energy in rural India.
Subsidy Evolution: From Rs 200 to Rs 300 Per Cylinder
To protect PMUY consumers from international LPG price fluctuations, the government introduced a targeted subsidy of Rs 200 per 14.2 kg cylinder in May 2022, covering up to 12 refills annually. In October 2023, the subsidy increased to Rs 300 per cylinder. The new cabinet approval maintains this Rs 300 subsidy but adjusts the number of subsidized refills to nine per year for 2025-26. This ensures financial support while optimizing expenditure. The subsidy applies proportionately to smaller 5 kg cylinders. By cushioning beneficiaries from price hikes, the government sustains LPG use and promotes cleaner cooking fuel adoption.
LPG Usage Boost: From Three to Nearly Five Refills
Data shows that average per capita consumption (PCC) of LPG among PMUY beneficiaries increased steadily over the years. In 2019-20, PMUY consumers averaged just three refills annually. By 2022-23, this rose to 3.68 refills. The latest figures for 2024-25 report an increase to 4.47 refills per consumer. This upward trend reflects the positive impact of the subsidy and the government’s focus on affordability. The sustained LPG usage reduces dependence on polluting fuels like firewood and kerosene, improving health outcomes and quality of life for millions of poor households
(From ANI)
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