New Delhi: The Union Cabinet has approved the continuation of the targeted LPG subsidy for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries in 2025–26, earmarking ₹12,000 crore to support domestic LPG usage among poor households.
The scheme will continue offering a ₹300 subsidy per 14.2-kg LPG cylinder for up to nine refills annually, with proportionate benefits for 5 kg connections. This assistance will remain in effect for the current financial year.
PMUY’s Reach and Support Framework
Launched in May 2016, PMUY provides deposit-free LPG connections to adult women from economically weaker households. As of July 1, 2025, the scheme covers 10.33 crore 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 a free first refill and stove, funded either by the government or oil marketing companies (OMCs).
Why the Subsidy Continues
India meets around 60% of its LPG demand through imports. The Ministry of Petroleum and Natural Gas stated that the subsidy shields vulnerable households from volatile global LPG prices and ensures continued adoption of clean cooking fuel.
Initially introduced at ₹200 per cylinder in May 2022 for up to 12 refills annually, the subsidy was raised to ₹300 in October 2023.
Government data shows rising LPG usage among PMUY households — from about 3 refills in 2019–20 to 3.68 in 2022–23, and 4.47 in 2024–25.
Support for PSU Oil Companies
In a parallel decision, the Cabinet approved ₹30,000 crore in compensation for PSU oil marketing companies to offset LPG-related losses, ensuring uninterrupted supply under the scheme.
