LPG subsidy cut: Ujjwala beneficiaries now eligible for just 4 subsidised cylinders a year

New Delhi: In a move that could affect millions of low-income households, the Centre has sharply reduced the number of subsidised LPG cylinders available annually under the Pradhan Mantri Ujjwala Yojana (PMUY), bringing the entitlement down from nine cylinders to just four.

The decision comes at a time when domestic cooking gas prices have been rising, increasing the financial burden on households that rely on subsidised LPG refills.

A senior Petroleum Ministry official said the revised limit has been fixed after analysing the average LPG consumption pattern among Ujjwala beneficiaries. According to the government, most PMUY households consume around four cylinders a year, making the new quota more closely aligned with actual usage.

What changes for Ujjwala beneficiaries?

The PMUY scheme, launched in 2016 to promote clean cooking fuel among economically weaker families, initially allowed beneficiaries to avail subsidies on up to 12 LPG cylinders annually. The limit was reduced to nine cylinders last year and has now been slashed further to four.

Eligible households will continue to receive a subsidy of Rs 300 on every 14.2-kg LPG cylinder within the revised quota. The subsidy amount is transferred directly into beneficiaries' bank accounts after each refill purchase.

LPG prices rise again

The reduction in subsidised cylinder availability comes against the backdrop of fresh increases in cooking gas prices.

Following the latest revision on June 7, the retail price of a standard 14.2-kg domestic LPG cylinder in Delhi has climbed to Rs 942. After accounting for the Rs 300 subsidy, Ujjwala beneficiaries currently pay Rs 642 per cylinder.

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Officials argued that despite recent hikes, domestic LPG prices in India remain relatively low compared with several international markets.

Apart from LPG, fuel prices have also seen recent revisions, with petrol and diesel becoming costlier over the past month. CNG rates have similarly witnessed an increase, reflecting broader pressure from global energy markets.

Government subsidy bill crosses Rs 52,000 crore

Officials said the Centre has spent nearly Rs 52,000 crore on LPG subsidies since 2022 as part of efforts to keep clean cooking fuel affordable for vulnerable households.

The subsidy support was reintroduced in May 2022 at Rs 200 per cylinder and later enhanced to Rs 300 per cylinder in October 2023. Similar benefits are also available for smaller 5-kg cylinders.