New Delhi — Offering significant relief to low-income households, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of targeted LPG subsidies under the Pradhan Mantri Ujjwala Yojana (PMUY) for the financial year 2025–26. The move will benefit over 10.33 crore families nationwide and involve an expenditure of ₹12,000 crore.
Under the extended scheme, PMUY beneficiaries will receive a ₹300 subsidy per 14.2 kg LPG cylinder for up to nine refills per year. For families opting for smaller 5 kg cylinders, the subsidy will be pro-rated accordingly. Officials said the decision is aimed at ensuring the affordability of clean cooking fuel and encouraging sustained LPG usage among economically weaker sections.
Launched in May 2016, PMUY provides deposit-free LPG connections to adult women from poor households, covering the security deposit for the cylinder, regulator, Suraksha hose, consumer card, and installation charges. Under Ujjwala 2.0, the government also provides the first refill and a stove free of cost, with expenses borne jointly by the Government of India and Oil Marketing Companies (OMCs).
Given that India imports nearly 60% of its LPG requirements, domestic prices are vulnerable to global market fluctuations. To shield PMUY consumers, the government introduced a ₹200 per cylinder targeted subsidy in May 2022 for up to 12 refills annually, which was later increased to ₹300 in October 2023.
The policy’s impact is reflected in usage data: average per capita consumption (PCC) among PMUY beneficiaries has risen from 3 refills in 2019–20 to 3.68 refills in 2022–23, and further to 4.47 refills in 2024–25. Officials see this growth as a sign of increased adoption of LPG over traditional, polluting fuels like firewood and coal.
By extending the subsidy, the Modi government aims to protect women’s health, reduce indoor air pollution, and advance India’s transition towards universal access to clean cooking energy. The continuation is also seen as a step to strengthen rural welfare and reinforce the government’s commitment to inclusive growth.
