Has the Cabinet Extended LPG Subsidy for PMUY Consumers at a Cost of Rs 12,000 Crore in 2025-26?
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Synopsis
The Union Cabinet has recently approved a substantial subsidy for PMUY consumers, ensuring LPG remains affordable. This decision not only supports millions of households but also reflects the government's commitment to providing essential services to the underprivileged. As LPG consumption trends rise, this initiative aims to stabilize costs amidst global price fluctuations.
Key Takeaways
- Targeted subsidy of Rs 300 for PMUY consumers.
- Financial allocation of Rs 12,000 crore for FY 2025-26.
- Increase in average LPG consumption among PMUY beneficiaries.
- Protection against international price fluctuations.
- Support for economically weaker households.
New Delhi, Aug 8 (NationPress) The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light to a targeted subsidy of Rs 300 for each 14.2 kg cylinder for up to 9 refills annually (and proportionately adjusted for 5 kg cylinders) aimed at beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) for the fiscal year 2025-26, with a financial commitment of Rs 12,000 crore.
Initiated in May 2016, the Pradhan Mantri Ujjwala Yojana seeks to offer deposit-free LPG connections to adult women from economically weaker households nationwide. As of July 1, 2025, there are approximately 10.33 crore PMUY connections across the country.
All PMUY beneficiaries receive a deposit-free LPG connection that encompasses the security deposit for the cylinder, a pressure regulator, a Suraksha Hose, a domestic gas consumer card booklet, and installation costs. According to the current guidelines of Ujjwala 2.0, the first refill and stove are also provided at no cost to all beneficiaries. Consequently, PMUY beneficiaries do not incur any expenses for the LPG connection or the first refill or stove, as these costs are covered by the government through public sector oil marketing companies.
The government introduced a targeted subsidy of Rs 200 for each 14.2 kg cylinder for up to 12 refills per year (also proportionately adjusted for 5 kg connections) in May 2022, to ensure that LPG remains affordable for PMUY consumers and to promote the continued use of this cooking gas in their households.
The initiative aims to protect PMUY beneficiaries from the volatility of international LPG prices, given that 60 percent of India’s LPG demand is met through imports.
In October 2023, the government raised the targeted subsidy to Rs 300 for each 14.2 kg cylinder for up to 12 refills per year (adjusted for 5 kg connections).
The average per capita consumption (PCC) of PMUY consumers has seen a positive trend, increasing from approximately 3 refills in 2019-20 and 3.68 refills in 2022-23 to around 4.47 refills during FY 2024-25, indicating the effectiveness of the scheme.
Point of View
This initiative showcases the government's proactive approach to ensuring that essential services like LPG remain accessible to the underprivileged. The extended subsidy reflects a commitment to support economically weaker sections, particularly women, highlighting the importance of energy security in their daily lives.
NationPress
20/08/2025
Frequently Asked Questions
What is the targeted subsidy amount for PMUY consumers?
The targeted subsidy for PMUY consumers is Rs 300 per 14.2 kg cylinder for up to 9 refills per year.
How many PMUY connections are there in India?
As of July 1, 2025, there are approximately 10.33 crore PMUY connections across the country.
What is the purpose of the Pradhan Mantri Ujjwala Yojana?
The PMUY aims to provide deposit-free LPG connections to adult women from poor households, enhancing their access to clean cooking fuel.
How has the average consumption of LPG among PMUY beneficiaries changed?
The average per capita consumption has increased from about 3 refills in 2019-20 to approximately 4.47 refills in FY 2024-25.
Why is the targeted subsidy important?
The targeted subsidy helps shield PMUY beneficiaries from fluctuations in international LPG prices, making cooking gas more affordable.
