New Delhi: The Union Cabinet, led by Prime Minister Narendra Modi, has approved a targeted subsidy of ₹300 per 14.2 kg LPG cylinder for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY).
This subsidy will cover up to nine refills per year, with a proportionate amount for 5 kg cylinders. The government has allocated an expenditure of ₹12,000 crore for this initiative during the financial year 2025-26.
Launched in May 2016, the PMUY provides a deposit-free LPG connection to adult women from low-income households. As of July 1, 2025, the program has reached about 10.33 crore beneficiaries across the country.
Under the Ujjwala 2.0 program, beneficiaries receive the following at no cost:
- A deposit-free LPG connection, including the security deposit for the cylinder, pressure regulator, and Suraksha hose.
- The first LPG refill.
- A free stove.
The Government of India and Oil Marketing Companies (OMCs) bear the cost of these items.
India imports approximately 60% of its LPG. The targeted subsidy helps protect PMUY beneficiaries from the impact of fluctuations in international LPG prices. By making LPG more affordable, the government aims to encourage sustained usage, which is crucial for the program’s success.
The government first introduced a targeted subsidy of ₹200 per 14.2 kg cylinder in May 2022, which was increased to ₹300 in October 2023. These subsidies have helped improve the average per capita consumption (PCC) of LPG among PMUY households. The PCC has risen from about 3 refills in 2019-20 to 3.68 refills in 2022-23, and further to about 4.47 refills in 2024-25.