Puri: Cabinet extends ₹300 PMUY LPG subsidy for FY 2026-27
Synopsis
Key Takeaways
With nearly 10.57 crore poor households dependent on clean cooking fuel, the Union Cabinet made sure the flame stays lit — approving the continuation of the targeted ₹300 per 14.2 kg domestic LPG cylinder subsidy for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for FY 2026-27. Union Petroleum Minister Hardeep Singh Puri announced the decision on Wednesday, September 30, 2026, underscoring that the Cabinet chaired by Prime Minister Narendra Modi had cleared a total expenditure of ₹12,001 crore for the scheme.
The subsidy will be prorated for 5 kg cylinders as well, ensuring that smaller households — often the most financially fragile — are not left at a disadvantage. The decision lands at a moment when global energy markets remain unsettled: ongoing conflict in West Asia and disruptions to traditional sea routes have tested every major LPG-importing nation's supply chain.
42 crore refills and a decade of PMUY's reach
Launched in May 2016, PMUY began as a targeted push to replace smoky, hazardous biomass cooking with clean LPG — specifically handing deposit-free connections to women from below-poverty-line households. A decade on, the numbers tell the story: beneficiaries collectively availed approximately 42 crore refills during 2025-26 alone, signalling that the scheme has moved well past symbolic uptake into everyday cooking habit.
That volume of refills also means the subsidy is a live, pulsing financial commitment — not an archived welfare line item. Every cylinder returned to a dealer and refilled represents the government's promise re-delivered at kitchen level.
India's supply chain under pressure — and how it held
Minister Puri's announcement was notable for its candour about the supply-side stress India has navigated. With West Asia in conflict and critical sea routes disrupted, India widened its import sourcing to a broader range of suppliers, keeping the LPG chain moving even as logistics grew complicated.
On the domestic side, a March 2026 directive to maximise refinery output delivered a sharp result: domestic LPG production was stepped up by 28% within just five days of the order. That kind of rapid ramp-up — unusual in the typically slow-moving world of refinery scheduling — reflects both the operational readiness of Indian refineries and the political urgency behind keeping Ujjwala households supplied.
Longer-term supply contracts are being secured in parallel, and buffer stocks are being maintained to smooth over any future disruptions. The cumulative effect, Puri noted, positions India among the countries offering LPG at one of the cheapest prices in the world.
₹12,001 crore and what it buys India
The ₹12,001 crore outlay is not merely a subsidy line — it is, in effect, a public-health and gender-equity investment. Clean cooking fuel reduces indoor air pollution, a documented killer, and frees women from hours of firewood collection. The government has consistently framed PMUY around these 'mothers and sisters', and the language in Puri's post this week continues that framing explicitly.
Whether refill rates and subsidy disbursement keep pace across all 10.57 crore connections through the full fiscal year will be the real measure of delivery — and the number to watch as FY 2026-27 unfolds.
India just told the world — and its poorest kitchens — that it will not let geopolitical fire burn out the cooking gas.