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

New Delhi: The Union Cabinet, chaired 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) during the financial year 2025-26. The subsidy, available for up to nine refills per year (proportionately adjusted for 5 kg cylinders), will involve an expenditure of ₹12,000 crore.

Launched in May 2016, PMUY aims to provide deposit-free LPG connections to adult women from poor households across India. As of July 1, 2025, there are around 10.33 crore PMUY connections nationwide. Each beneficiary receives a deposit-free LPG connection covering the security deposit for the cylinder, pressure regulator, suraksha hose, consumer card, and installation charges. Under Ujjwala 2.0, the first refill and a stove are also provided free of cost.

The targeted subsidy was first introduced in May 2022 at ₹200 per 14.2 kg cylinder for up to 12 refills annually to shield PMUY households from volatile global LPG prices. This was increased to ₹300 in October 2023. The latest approval continues the ₹300 subsidy for 2025-26 but limits it to nine refills to ensure targeted support while encouraging prudent usage.

The move has already contributed to improved LPG usage among PMUY households. The average per capita consumption, which stood at around three refills in 2019-20, rose to 3.68 refills in 2022-23 and further to about 4.47 refills in 2024-25, reflecting better adoption of clean cooking fuel.

Officials said the decision will make LPG more affordable, sustain its regular use among poor households, and further the government’s objective of reducing dependence on polluting cooking fuels in rural and underprivileged areas.