Cabinet approves continuation of Targeted Subsidy for Pradhan Mantri Ujjwala Yojana consumers

The Union Cabinet, on August 8, 2025, approved the continuation of the targeted subsidy for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) for the fiscal year 2025-26. The decision, which entails an expenditure of ₹12,000 crore, is a significant step to ensure access to affordable and clean cooking fuel for low-income households.

Key Provisions for FY 2025-26

• Subsidy Amount: A targeted subsidy of ₹300 per 14.2 kg LPG cylinder will be provided. The subsidy amount is proportionately pro-rated for 5 kg cylinders.
• Refill Limit: Beneficiaries will be eligible for the subsidy for up to nine refills per year. This is a reduction from the previous limit of 12 refills per year.
• Total Beneficiaries: As of July 1, 2025, the scheme covers approximately 10.33 crore PMUY connections across the country.

Background of the PMUY Scheme

• The PMUY was launched in May 2016 to provide deposit-free LPG connections to adult women from poor households, aiming to replace traditional, health-damaging cooking fuels.
• Under the scheme’s current modality (Ujjwala 2.0), beneficiaries receive a free-of-cost connection, including the security deposit for the cylinder, regulator, and stove, along with the first refill.
• The targeted subsidy was first introduced in May 2022 to shield beneficiaries from fluctuating international LPG prices, as India imports about 60% of its LPG needs.
• Initially at ₹200 per cylinder, the subsidy was increased to ₹300 in October 2023. The continuation of this subsidy is a crucial step to encourage the sustained use of LPG among PMUY households.

(Source: AIR)