Ujjwala Yojana subsidised LPG refills cut from 9 to 4 amid rising global prices
Synopsis
The Centre has quietly but significantly rolled back one of its flagship welfare commitments — slashing Ujjwala Yojana's subsidised LPG refills from nine to four per year. With oil marketing companies losing ₹700 per cylinder and global benchmarks up 46% since February, the fiscal math left the government little choice. But for millions of low-income households, the effective subsidy has just been cut by more than half.
Key Takeaways
The Centre has reduced PMUY subsidised LPG refills from 9 per year to 4 per year , effective 8 June .
The ₹300 per cylinder subsidy remains, but is now capped at 4 refills , limiting annual support to ₹1,200 per household .
Per-cylinder supply cost has crossed ₹1,600 ; oil marketing companies are losing approximately ₹700 per cylinder sold.
The Saudi Contract Price (CP) for LPG has risen about 46% since February , driving the policy change.
A ₹29 per cylinder price hike took effect on 7 June , the second increase in three months; Delhi consumers now pay ₹942 for a 14.2-kg cylinder.
PMUY consumers in Delhi pay ₹642 per cylinder after subsidy, against the general consumer price of ₹942 .
The Centre on Monday, 8 June announced a sharp reduction in the number of subsidised LPG cylinder refills available to beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY), cutting the annual entitlement from nine cylinders to four. The move is aimed at reining in ballooning subsidy costs as global fuel prices surge and losses at state-owned oil marketing companies widen.
What Has Changed for Ujjwala Beneficiaries
Eligible PMUY households will continue to receive a subsidy of ₹300 per 14.2-kg cylinder, but only for the first four refills in a financial year. This effectively caps total annual subsidy support at ₹1,200 per household — down from a potential ₹2,700 under the earlier nine-refill structure.
Additional Secretary, Ministry of Petroleum and Natural Gas, Praveen Khanooja, confirmed the details at a media briefing, noting that PMUY consumers in Delhi are currently paying ₹642 for a 14.2-kg cylinder, while general consumers pay ₹942 for the same size.
Why the Government Is Acting Now
According to the ministry, the Saudi Contract Price (CP) — the primary international benchmark for LPG imports — has risen by approximately 46 per cent since February, pushing the per-cylinder supply cost above ₹1,600. Oil marketing companies are currently absorbing a loss of roughly ₹700 on every cylinder sold at domestic rates.
Khanooja said even non-Ujjwala consumers are being partially shielded from the full force of global price volatility through government interventions, though the subsidy rationalisation signals that the cushion is narrowing.
Recent LPG Price Hikes Add to Household Pressure
The subsidy cut follows a ₹29 per cylinder price increase that took effect on Sunday, 7 June, raising the cost of a 14.2-kg domestic LPG cylinder in Delhi from ₹913 to ₹942. This is the second hike in three months, as state-owned oil marketing companies continue to face pressure from elevated global energy costs.
Notably, this is the first time the PMUY refill ceiling has been revised since the scheme's expansion in recent years, and it comes at a politically sensitive moment given the scheme's centrality to the government's welfare narrative for rural and low-income households.
Impact on Households and What Comes Next
The PMUY, launched to provide clean cooking fuel to below-poverty-line families, has been a flagship social scheme. Cutting subsidised refills to four per year means that households requiring more than four cylinders annually — which is common in larger or colder-region families — will bear the full market price for additional refills.
With global LPG benchmarks showing no immediate sign of easing, further adjustments to the subsidy framework cannot be ruled out, according to reports. The government has not indicated a timeline for restoring the nine-refill entitlement.
Point of View
Or the beginning of a permanent recalibration of what the state owes its poorest consumers.
NationPress
25 Jul 2026
Frequently Asked Questions
What is the new LPG subsidy limit under Pradhan Mantri Ujjwala Yojana?
Under the revised policy, PMUY beneficiaries will receive a ₹300 subsidy per 14.2-kg cylinder for only the first four refills in a year, capping total annual subsidy support at ₹1,200 per household. Previously, the entitlement covered nine subsidised refills per year.
Why has the government reduced Ujjwala Yojana LPG refills?
The reduction is aimed at containing rising subsidy costs as the Saudi Contract Price for LPG has climbed approximately 46% since February, pushing per-cylinder supply costs above ₹1,600. Oil marketing companies are currently incurring losses of around ₹700 on every cylinder sold at domestic rates.
How much are PMUY consumers paying for LPG in Delhi now?
PMUY consumers in Delhi are currently paying ₹642 for a 14.2-kg LPG cylinder after the ₹300 subsidy is applied. General consumers in Delhi pay ₹942 for the same cylinder, following a ₹29 hike that took effect on 7 June.
Is this the first time LPG prices have been hiked recently?
No. The ₹29 per cylinder increase on 7 June is the second price hike in three months, as state-owned oil marketing companies continue to face pressure from elevated global energy costs.
What happens if an Ujjwala household needs more than four cylinders a year?
Households requiring more than four refills annually will have to pay the full market price for any additional cylinders beyond the four subsidised ones. The government has not announced any alternative support mechanism for higher-consumption households.
