PMUY: Cabinet Approves Continuation of LPG Subsidy

On 8th August 2025, the Union Cabinet approved the continuation of the targeted subsidy of Rs. 300 per 14.2 kg LPG cylinder (up to nine refills per year, proportionately for 5 kg cylinders) for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries during FY 2025-26.

Key Points

Scheme Overview: Launched in May 2016, PMUY provides adult women from poor households with a deposit-free LPG connection, including the cylinder, regulator, hose, DGCC booklet, and installation charges. Under Ujjwala 2.0, the first refill and stove are also free.
Beneficiary Base: As of 1^st July 2025, there are approximately 10.33 crore PMUY connections across India.
Targeted Subsidy Mechanism: Introduced in May 2022 at Rs. 200 per 14.2 kg cylinder (up to 12 refills annually) to shield beneficiaries from international LPG price volatility. Increased to Rs. 300 in October 2023.
Reason for Continuation: India imports about 60% of its LPG needs; the subsidy aims to make LPG affordable for poor households while offsetting global price fluctuations.
Improved Consumption: Average per capita consumption for PMUY households rose from three refills in 2019-20 to 3.68 refills in 2022-23 and further to 4.47 refills in FY 2024-25.
Impact: The continuation of the subsidy is expected to enhance affordability, encourage cleaner cooking fuel adoption, and improve health outcomes for PMUY households.