The Prime Minister Narendra Modi-led Union Cabinet, in its recent session, has given the green light for the continuation of the targeted subsidy scheme, providing Rs 300 per 14.2 kg LPG cylinder for up to 12 refills annually, under the Pradhan Mantri Ujjwala Yojana (PMUY) throughout the financial year 2024-25.
Allocating a budget of Rs 12,000 crore for the fiscal year 2024-25, this subsidy will be directly deposited into the bank accounts of eligible beneficiaries, as per an official announcement.
As of March 1, 2024, the count of PMUY beneficiaries stands at more than 10.27 crore.
The Pradhan Mantri Ujjwala Yojana was introduced by the government in May 2016 with the aim of providing deposit-free LPG connections to adult women from economically challenged households, ensuring access to clean cooking fuel in rural and underserved areas.
With India importing approximately 60% of its LPG demand, the government initiated a targeted subsidy of Rs 200 per 14.2 kg cylinder for up to 12 refills annually (adjusted proportionately for 5 kg connections) for PMUY consumers in May 2022. This move was aimed at shielding beneficiaries from the volatility of international LPG prices and making the fuel more affordable, thereby promoting its sustained usage.
In October 2023, this subsidy was raised to Rs 300 per 14.2 kg cylinder for up to 12 refills annually (and proportionately adjusted for 5 kg connections). As of February 1, 2024, the effective price of domestic LPG for PMUY consumers in Delhi stands at Rs 603 per 14.2 kg cylinder.
Notably, the average consumption of LPG among PMUY consumers has seen a significant uptick, rising by 29% from 3.01 refills in 2019-20 to 3.87 refills (as of January 2024) on a pro-rated basis for the year 2023-24. This targeted subsidy is available to all PMUY beneficiaries, ensuring continued support for their LPG needs.
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