Cabinet extends LPG subsidy for PMUY consumers at a cost of Rs 12,000 crore in 2025-26

New Delhi, Aug 8 The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday 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 the Pradhan Mantri Ujjwala Yojana (PMUY) during FY 2025-26 with an expenditure of Rs 12,000 crore.

The Pradhan Mantri Ujjwala Yojana (PMUY) was launched in May 2016 with the objective to provide deposit-free LPG connections to adult women from poor households across the country. As of July 1, 2025, there are about 10.33 crore PMUY connections across the country.

All PMUY beneficiaries receive a deposit-free LPG connection, which includes a security deposit of the cylinder, pressure regulator, Suraksha Hose, domestic gas consumer card booklet, and installation charges. As per the existing modalities of Ujjwala 2.0, the first refill and stove are 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 Centre through the public sector oil marketing companies.

Under the targeted subsidy to Pradhan Mantri Ujjwala Yojana consumers to make LPG more affordable for them and thereby ensuring sustained usage of the cooking gas by these households, the 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.

The objective of the scheme is to shield PMUY beneficiaries from the impact of sharp fluctuations in international prices of LPG since 60 per cent of India’s LPG requirement is met through imports.

In October 2023, the government increased the 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).

The 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 refills during FY 2024-25, reflecting the success of the scheme.

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