New Delhi: The central government has reduced the number of subsidised LPG cylinders available annually to beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) from nine to four, citing consumption patterns among beneficiary households and mounting pressures from rising international fuel prices.
Launched in 2016, the Ujjwala scheme provides free LPG connections to women from economically weaker households with the aim of promoting clean cooking fuel and reducing dependence on traditional fuels. Beneficiaries were initially entitled to 12 subsidised 14.2 kilogram cylinders every year. The quota was reduced to nine cylinders last year and has now been further lowered to four.
Government officials stated that the revised entitlement closely matches the average annual LPG consumption of Ujjwala households. Despite the reduction, beneficiaries will continue to receive a subsidy of Rs 300 per 14.2 kilogram cylinder, which is directly transferred to their bank accounts after purchase. The subsidy was first introduced at Rs 200 per cylinder in 2022 and was increased to Rs 300 in October 2023.
The decision comes amid a rise in domestic cooking gas prices. Following two recent revisions, the price of a 14.2 kilogram LPG cylinder in Delhi has increased by a cumulative Rs 89, reaching Rs 942. After applying the subsidy, Ujjwala beneficiaries currently pay Rs 642 per cylinder.
Officials highlighted that the actual cost of supplying a domestic LPG cylinder has risen sharply and now exceeds Rs 1,600. International LPG prices have surged significantly in recent months due to disruptions in West Asia and tightening supplies from the Gulf region. India’s LPG import costs are linked to global benchmarks, which have recorded substantial increases since February.
The government has spent nearly Rs 52,000 crore on LPG subsidies since 2022 to shield consumers from rising costs. However, public sector oil marketing companies continue to face substantial losses on the sale of LPG, petrol and diesel, prompting recent price adjustments.
Authorities maintain that despite the hikes, cooking gas prices in India remain among the lowest globally when compared with prevailing international fuel rates.
