Govt extends subsidy on cooking gas for Ujjwala beneficiaries by March 25

New Delhi [India]: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the extension of a targeted subsidy of Rs 300 per 14.2 kg cylinder for up to 12 refills per year for the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY) for the financial year 2024-25.

As of March 1, 2024, there are more than 10.27 crore PMUY beneficiaries. The total expenditure will be Rs 12,000 crore for the financial year 2024-25. The subsidy is credited directly to the bank accounts of the eligible beneficiaries, the Ministry of Petroleum and Natural Gas said in a statement.

To make liquefied petroleum gas (LPG), a clean cooking fuel, available to rural and deprived poor households, the government launched the Pradhan Mantri Ujjwala Yojana in May 2016, to provide deposit-free LPG connections to adult women of poor households, the statement said.

India imports about 60 per cent of its LPG requirements. To shield PMUY beneficiaries from the impact of sharp fluctuations in international prices of LPG and to make LPG more affordable to PMUY consumers, thereby ensuring sustained usage of LPG by them, the government started a targeted subsidy of Rs 200/- per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 kg connections) to the PMUY consumers in May 2022.

In October 2023, the government increased targeted subsidies to Rs 300 per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 kg connections). As of February 1, 2024, the effective price of domestic LPG for PMUY consumers is Rs 603 per 14.2 kg LPG cylinder (Delhi).

The average LPG consumption of PMUY consumers has increased by 29 per cent from 3.01 refills in 2019-20 to 3.87 refills (till January 2024) prorated for 2023-24.
All PMUY beneficiaries are eligible for this targeted subsidy.