Cabinet okays continuation of targeted LPG subsidy for Ujjwala beneficiaries, earmarks Rs 12,000 crore in FY26

New Delhi: The Union Cabinet on Friday approved the continuation of the targeted subsidy for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for 2025-26, allocating Rs 12,000 crore to support LPG purchases. In a statement, the government said the scheme will continue to provide a subsidy of Rs 300 per 14.2-kg cylinder for up to nine refills a year — proportionately pro-rated for 5 kg connections — to eligible households during the current financial year.

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PMUY reach and benefits

Launched in May 2016, PMUY aims to provide deposit-free LPG connections to adult women from poor households. As of July 1, 2025, there are about 10.33 crore PMUY connections nationwide.

The benefits include the security deposit for the cylinder and regulator, a suraksha hose, a domestic gas consumer card, and installation charges. Under Ujjwala 2.0, beneficiaries also receive the first refill and stove free of cost, with expenses borne by the government or oil marketing companies (OMCs).

Rationale for subsidy continuation

The Ministry of Petroleum and Natural Gas noted that India imports about 60 percent of its LPG requirement. The targeted subsidy aims to protect PMUY households from sharp fluctuations in global LPG prices and encourage sustained usage.

The subsidy, initially set at Rs 200 per cylinder for up to 12 refills a year in May 2022, was raised to Rs 300 in October 2023.

The government said the per capita consumption of PMUY households has steadily increased — from about three refills in 2019-20 to 3.68 in 2022-23, and to around 4.47 refills in 2024-25.

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