Union Cabinet Greenlights Rs. 12,000 Crore Subsidy Extension for Ujjwala Yojana Beneficiaries

New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its nod to the continuation of a targeted subsidy of Rs. 300 per 14.2 kg cylinder, pro-rated for 5 kg cylinders, for up to 12 refills per year. This subsidy extension is designed for the beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) during the financial year 2024-25. As of March 1, 2024, there are over 10.27 crore PMUY beneficiaries across the country.

The approved subsidy, totaling Rs. 12,000 crore for the financial year 2024-25, will be directly credited to the bank accounts of eligible beneficiaries. The scheme aims to provide financial relief to economically vulnerable households, ensuring continued access to clean cooking fuel.

The Pradhan Mantri Ujjwala Yojana, launched in May 2016, focuses on making Liquified Petroleum Gas (LPG) accessible to rural and economically deprived households. The initiative provides deposit-free LPG connections to adult women from impoverished households, promoting a shift to clean and sustainable cooking practices.

Given that India imports approximately 60% of its LPG requirement, the government aims to shield PMUY beneficiaries from the impact of volatile international LPG prices. In May 2022, the government introduced a targeted subsidy of Rs. 200 per 14.2 kg cylinder for up to 12 refills per annum. In October 2023, the subsidy was increased to Rs. 300 per 14.2 kg cylinder, extending support to the PMUY consumers.

As of February 1, 2024, the effective price of domestic LPG for PMUY consumers stands at Rs. 603 per 14.2 kg cylinder in Delhi. The targeted subsidy has resulted in a 29% increase in the average LPG consumption of PMUY consumers, rising from 3.01 refills in 2019-20 to 3.87 refills as of January 2024, prorated for the current fiscal year. All PMUY beneficiaries are eligible for this targeted subsidy, ensuring a sustained and affordable usage of LPG.