Home India Ministry of Petroleum and Natural Gas Cabinet approves continuation of Targeted Subsidy for Pradha...
Date: 2025-08-08 Category: Not Applicable State: Union Government Country: India

Cabinet approves continuation of Targeted Subsidy for Pradhan Mantri Ujjwala Yojana Consumers for 2025-26 at Rs 12,000 crore

Issued by Ministry of Petroleum and Natural Gas · Not Applicable

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Executive Summary & Key Takeaways

**Policy Summary: Continuation of Targeted Subsidy for Pradhan Mantri Ujjwala Yojana (PMUY) Consumers in FY 2025-26** **Overview:** The Union Cabinet, chaired by the Prime Minister, has approved the continuation of a targeted subsidy for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) for the fiscal year 2025-26. This subsidy aims to mitigate the impact of international LPG price fluctuations and enhance affordability for PMUY consumers, encouraging sustained LPG usage. **Key Provisions:** * **Subsidy Amount:** INR 300 per 14.2 kg LPG cylinder, proportionately prorated for 5 kg cylinders. * **Refills:** Applicable for up to 9 refills per year. * **Expenditure:** The total approved expenditure for this initiative is INR 12,000 crore. **Background:** * **PMUY Launch:** The PMUY was launched in May 2016 to provide deposit-free LPG connections to adult women from poor households nationwide. * **Coverage:** As of July 1, 2025, the scheme encompasses approximately 10.33 crore PMUY connections across India. * **Initial Benefits:** PMUY beneficiaries receive a deposit-free LPG connection, including the cylinder security deposit, pressure regulator, Suraksha hose, Domestic Gas Consumer Card (DGCC) booklet, and installation charges. Under Ujjwala 2.0, the first refill and a stove are also provided free of cost. **Rationale for Subsidy:** * **Import Dependence:** India imports approximately 60% of its LPG requirements. * **Previous Subsidies:** A targeted subsidy of INR 200 per 14.2 kg cylinder (up to 12 refills) was initially introduced in May 2022 and subsequently increased to INR 300 per cylinder (up to 12 refills) in October 2023. **Impact:** * **Improved Consumption:** The average per capita consumption (PCC) of PMUY consumers has increased from approximately 3 refills in 2019-20 and 3.68 in 2022-23 refills to about 4.47 refills during FY 2024-25. **Source:** PIB Delhi, Release ID: 2154132, August 8, 2025.

Key Entities Referenced

Ministry of Petroleum Natural Gas: The Indian government ministry responsible for the exploration, production, refining, distribution, marketing, and pricing of petroleum, natural gas, and petrochemicals. Pradhan Mantri Ujjwala Yojana: A government scheme launched in May 2016 to provide deposit-free LPG connections to women from poor households. Narendra Modi: The Prime Minister of India who chaired the Union Cabinet meeting. Union Cabinet: The cabinet of ministers in the Government of India. LPG: Liquefied Petroleum Gas, a cooking gas subsidized under the Pradhan Mantri Ujjwala Yojana. Ujjwala 2.0: An updated version of the Pradhan Mantri Ujjwala Yojana. Delhi: The city in India where the Press Information Bureau (PIB) released the information. 2025-26: The financial year for which the targeted subsidy for Pradhan Mantri Ujjwala Yojana Consumers has been approved.
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Ministry of Petroleum & Natural Gas Cabinet approves continuation of Targeted Subsidy for Pradhan Mantri Ujjwala Yojana Consumers for 2025-26 at Rs 12,000 crore Posted On: 08 AUG 2025 4:14PM by PIB Delhi The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, has approved the targeted subsidy of Rs.300 per 14.2 kg cylinder for up to 9 refills per year (and proportionately pro-rated for 5 kg cylinder) to the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY) during FY 2025-26 at an expenditure of Rs 12,000 crore. Pradhan Mantri Ujjwala Yojana: Pradhan Mantri Ujjwala Yojana (PMUY) was launched in May, 2016 with an objective to provide deposit-free LPG connection to adult women from poor households across the country. As on 01.07.2025, there are about 10.33 crore PMUY connections across the country. All PMUY beneficiaries receive deposit-free LPG connection which includes Security Deposit (SD) of Cylinder, Pressure Regulator, Suraksha Hose, Domestic Gas Consumer Card (DGCC) booklet and installation charges. As per the existing modalities of Ujjwala 2.0, the first refill and stove is also provided free of cost to all beneficiaries. PMUY beneficiaries are not required to make any payments for the LPG connection or the first refill or stove as the cost for these is borne by the Government of India/OMCs. Targeted Subsidy to Pradhan Mantri Ujjwala Yojana consumers: India imports about 60% of its LPG requirement. To shield PMUY beneficiaries from the impact of sharp fluctuations in international prices of LPG and to make LPG more affordable to PMUY consumers, thereby ensuring sustained usage of LPG by them, Government started a targeted subsidy of Rs.200/- per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 kg connections) to the PMUY consumers in May 2022. In October 2023, Government increased targeted subsidy to Rs.300 per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 kg connections). Improved LPG consumption by PMUY Households: Average Per Capita Consumption (PCC) of PMUY consumers which was only about 3 refills in 2019-20 and 3. 68 refills in 2022-23 has improved to about 4.47 during FY 2024-25. *** MJPS/BM (Release ID: 2154132)

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