Government Cuts Subsidised LPG Refill Limit For Ujjwala Beneficiaries To Four Cylinders A Year

The government has reduced the number of subsidised cooking gas cylinders available annually to beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) from nine to four, stating that the revised limit reflects the average consumption pattern of households covered under the scheme.

Speaking at a news briefing on June 8, Praveen Mal Khanooja, Additional Secretary in the Ministry of Petroleum and Natural Gas, stated that the new entitlement broadly matches the average annual LPG usage among PMUY beneficiaries.

Launched in May 2016, the Ujjwala scheme provides deposit-free LPG connections to adult women from economically weaker households. Beneficiaries were initially eligible for subsidies on up to 12 cylinders of 14.2 kg every year. The annual subsidised quota was reduced to nine cylinders last year and has now been cut further to four.

Subsidy Support Continues

The government introduced a targeted subsidy of Rs 200 per 14.2 kg LPG cylinder in May 2022 to encourage the use of cleaner cooking fuel. The subsidy, credited directly to beneficiaries' bank accounts after purchase, was applicable for up to 12 cylinders annually.

In October 2023, the subsidy was increased to Rs 300 per cylinder. A proportionate subsidy was also extended to 5 kg cylinders.

Following the latest revision, PMUY beneficiaries will continue to receive the Rs 300 subsidy on four cylinders each year. At current prices, beneficiaries pay Rs 642 for a 14.2 kg cylinder after accounting for the subsidy.

Khanooja mentioned in the news briefing that beneficiaries effectively receive support of around Rs 1,000 per cylinder when compared with the government's estimated supply cost of more than Rs 1,600 per cylinder.

LPG Prices Rise Amid Higher Import Costs

The reduction in subsidised refills comes amid rising LPG prices. On June 7, the price of a 14.2 kg domestic LPG cylinder was increased by Rs 29, taking the retail price in Delhi to Rs 942. This follows another increase earlier this year, resulting in a cumulative rise of Rs 89 over the past three months.

Khanooja stated that the increase works out to around Re 1 per day and about 20 paise per day for each member of a five-member household.

He also stated, in the briefing, that international LPG prices have risen sharply following disruptions in West Asia. India's LPG imports are linked to the Saudi Contract Price, the global benchmark for LPG, which has increased by about 46 per cent since February.

Khanooja said that the government has provided around Rs 52,000 crore in LPG subsidies since 2022. He further mentioned that oil marketing companies continue to incur losses on the sale of LPG, petrol and diesel despite recent price increases.

1. Why has the government reduced subsidised LPG cylinders for Ujjwala beneficiaries?

   The government stated that the revised limit of four subsidised cylinders a year aligns with the average LPG consumption of PMUY households.

2. What is the current LPG subsidy under the Ujjwala scheme?

   PMUY beneficiaries receive a subsidy of Rs 300 on each 14.2 kg LPG cylinder, credited directly to their bank accounts.

3. What is PMUY?

   PMUY is a government scheme that provides LPG connections to women from eligible low-income households to promote cleaner cooking fuel.

4. How much does an LPG cylinder cost for Ujjwala beneficiaries after subsidy?

   At the current Delhi price of Rs 942 per cylinder, PMUY beneficiaries effectively pay Rs 642 after the Rs 300 subsidy.

5. Who is eligible for the Ujjwala LPG subsidy?

   Women from eligible low-income households with a PMUY LPG connection and a linked bank account can receive the subsidy.

6. Why are LPG prices increasing in India?

   LPG prices have risen due to higher international LPG costs, driven by supply disruptions and geopolitical tensions in West Asia.