Govt extends ₹300 LPG subsidy for Ujjwala beneficiaries till 2025

Ahead of general elections, the government on Thursday announced the extension of ₹300 per LPG cylinder subsidy to poor women under the Ujjwala Yojana for the next fiscal starting April 1.

The government had in October last year hiked the subsidy from ₹200 per 14.2-kg cylinders for up to 12 refills per year to ₹300 per bottle. The ₹300 per cylinder subsidy was for the current fiscal, which ends on March 31.

The Cabinet Committee on Economic Affairs (CCEA) has now decided to extend this subsidy to 2024-25, Union Minister Piyush Goyal told reporters here.

The move, likely to benefit nearly 10 crore families, will cost the government ₹12,000 crore.

The general elections are due in April-May.

To make Liquified Petroleum Gas (LPG), a clean cooking fuel, available to rural and deprived poor households, the government launched Pradhan Mantri Ujjwala Yojana (PMUY) in May 2016 to provide deposit-free LPG connections to adult women of poor households.

While the connection was provided for free, the beneficiaries had to purchase LPG refills at market price.

As fuel prices soared, the government in May 2022 provided a ₹200 per cylinder subsidy to PMUY beneficiaries. This was increased to ₹300 in October 2023.

Ahead of assembly elections in five states, including Madhya Pradesh and Rajasthan, the government had in late August cut cooking gas prices by ₹200 per cylinder. After this, the LPG cylinder price came down to ₹903.

For Ujjwala beneficiaries, the price was ₹603 after considering the ₹300 per cylinder subsidy, which is directly paid into the bank accounts of connection holders.

The targeted support to PMUY consumers encourages them for continuous use of LPG.

The average LPG consumption of PMUY consumers increased 20 per cent from 3.01 refills in 2019-20 to 3.68 in 2021-22.

All PMUY beneficiaries are eligible for the targeted subsidy scheme.