Cabinet Approves ₹300 LPG Subsidy for PMUY Beneficiaries in FY 2025-26

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of a targeted LPG subsidy of ₹300 per 14.2 kg cylinder for up to nine refills per year during FY 2025–26 for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY). The decision, involving an expenditure of ₹12,000 crore, also applies proportionately to 5 kg LPG cylinders.

This move aims to shield low-income households from the impact of volatile international LPG prices and ensure sustained use of clean cooking fuel across the country.

About Pradhan Mantri Ujjwala Yojana (PMUY)

Launched in May 2016, PMUY was designed to provide deposit-free LPG connections to adult women from poor households, thereby reducing dependence on polluting traditional cooking methods.

As of 1 July 2025, there are 10.33 crore PMUY connections nationwide. Each beneficiary receives a package that includes:

• Security deposit for the LPG cylinder

• Pressure regulator

• Suraksha hose

• Domestic Gas Consumer Card (DGCC) booklet

• Installation charges

Under the Ujjwala 2.0 framework, the first LPG refill and a stove are also provided free of cost. PMUY beneficiaries do not pay for the initial setup, as the Government of India and Oil Marketing Companies (OMCs) bear these expenses.

Evolution of the LPG Subsidy Scheme

India imports around 60% of its LPG requirements, making domestic prices sensitive to global market fluctuations. To protect PMUY beneficiaries and encourage regular LPG usage, the government introduced a targeted subsidy of ₹200 per 14.2 kg cylinder in May 2022, covering up to 12 refills per year.

In October 2023, this subsidy was increased to ₹300 per cylinder for the same annual limit, significantly reducing the financial burden on low-income households.

Subsidy for FY 2025-26 – Key Points

• ₹300 subsidy per 14.2 kg cylinder

• Maximum of 9 refills per year (pro-rated for 5 kg cylinders)

• ₹12,000 crore budgetary allocation

• Objective: Affordability, clean fuel adoption, and sustained usage

Improved LPG Usage Among PMUY Households

Government data shows a steady rise in average Per Capita Consumption (PCC) of LPG among PMUY households:

• 2019–20: 3 refills per year

• 2022–23: 3.68 refills per year

• 2024–25: 4.47 refills per year

The improved consumption reflects increased affordability, awareness, and accessibility of LPG in rural and low-income households.

Driving Clean Energy Transition

The targeted subsidy is part of the government’s broader strategy to promote clean cooking solutions, improve rural health by reducing indoor air pollution, and align with India’s energy transition and climate goals. By ensuring the continued affordability of LPG, the scheme supports both environmental and socio-economic objectives, empowering women and improving quality of life in millions of households.