The central government has taken a big decision regarding LPG gas subsidy under the Pradhan Mantri Ujjwala Yojana (PMUY). In the meeting of the Union Cabinet chaired by Prime Minister Narendra Modi, it was approved to continue a subsidy of Rs 300 on domestic gas cylinders of 14.2 kg. This facility will be available from FY 2025-26, but it will get the benefit only after filling the cylinder 9 times a year. The government estimates that this decision will cost around Rs 12,000 crore. Its direct benefit will be given to millions of bright beneficiaries, whose relief will be reached on their pockets amidst inflation.
Why was this decision taken?
India is dependent on imports for about 60% of its LPG needs. In May 2022, the government started a subsidy of Rs 200 on each cylinder to ensure that global prices fluctuations do not affect the poor families. It was applied to a maximum of 12 times refill a year and was also given proportionately for a 5 kg cylinder. Now, with a subsidy of Rs 300 instead of 200 rupees, LPG will be more cheap for the beneficiaries of Ujjwala scheme. The government believes that this step will increase continuous and affordable use of LPG.
Improvement in LPG consumption
In the last few years, LPG use has steadily increased among the families associated with the Ujjwala scheme. In 2019-20, an average of 3 times per beneficiary was refilled, which increased to 3.68 in 2022-23 and about 4.47 in 2024-25. Statistics show that now more people are using LPG regularly, which has also reduced the health problems caused by smoke.
Ujjwala scheme started in 2016
The Pradhan Mantri Ujjwala Yojana was started in May 2016. Its purpose was to provide LPG connections without any advance deposit to poor families, especially women. By 1 July 2025, about 10.33 crore connections have been given across the country. Under this scheme, beneficiaries do not have to spend any cost on cylinders, regulators, pipes, DGCC books and installation fees. Ujjwala 2.0 is also given the first refill and a stove for free. All these expenses are borne by the government and oil companies, due to which poor families are able to start using LPG without any financial burden.