The Central Government has announced a significant revision to the Pradhan Mantri Ujjwala Yojana (PMUY) by reducing the number of subsidised LPG cylinder refills available to beneficiaries from nine per year to four per year. The move comes as the government seeks to manage rising subsidy expenditures amid increasing global LPG prices and mounting losses faced by oil marketing companies.
🔹 Subsidised LPG refills under PMUY reduced from 9 to 4 annually.
🔹 Beneficiaries will continue receiving Rs 300 subsidy per cylinder.
🔹 Maximum annual subsidy support capped at Rs 1,200 per household.
🔹 Oil companies are reportedly losing around Rs 700 per LPG cylinder sold.
🔹 Global LPG benchmark prices have surged 46% since February.
🔹 Domestic LPG cylinder prices increased by Rs 29 from June 7.
New Delhi, June 09: Announcing the decision, Praveen Khanooja, Additional Secretary in the Ministry of Petroleum and Natural Gas, said PMUY beneficiaries will continue to receive a subsidy of Rs 300 per 14.2-kg LPG cylinder, but only on the first four refills during a financial year. As a result, the maximum annual subsidy support available under the scheme will now be capped at Rs 1,200 per household.
The government stated that the revision has been made against the backdrop of sharply rising LPG procurement costs. The cost of supplying a domestic LPG cylinder has reportedly crossed Rs 1,600 per cylinder, while oil marketing companies are currently incurring losses of around Rs 700 on every cylinder sold.
Despite the reduction in subsidised refills, PMUY beneficiaries continue to receive LPG cylinders at substantially lower rates than regular consumers. According to government data, PMUY consumers in Delhi are currently paying Rs 642 for a 14.2-kg cylinder, compared to Rs 942 paid by general consumers.
Officials also emphasized that non-Ujjwala consumers are being shielded from the full impact of international price increases through government support measures. The Ministry of Petroleum and Natural Gas noted that the surge in under-recoveries is largely driven by a sharp increase in global LPG benchmark prices.
The Saudi Contract Price (CP), a key benchmark used for LPG imports into India, has risen by approximately 46 per cent since February, significantly increasing the cost burden on oil marketing companies.
The announcement follows a recent increase in domestic LPG prices. Effective from June 7, the price of a standard 14.2-kg domestic LPG cylinder in Delhi increased by Rs 29, rising from Rs 913 to Rs 942. This marks the second LPG price hike in three months as state-owned oil companies continue to grapple with elevated global energy prices.
The government maintains that the revised subsidy structure balances the need to support economically weaker households while ensuring the long-term sustainability of the LPG subsidy programme amid volatile international energy markets.
The government’s decision to reduce subsidised LPG refills under the Pradhan Mantri Ujjwala Yojana reflects the growing pressure of rising global energy prices and increasing subsidy burdens. While beneficiaries will continue to receive financial support through a Rs 300 subsidy per cylinder, the reduction in annual refill eligibility aims to balance welfare commitments with fiscal sustainability. As global LPG prices remain elevated, both consumers and policymakers are likely to closely monitor future developments in domestic fuel pricing and subsidy policies.
Q1. What change has the government made to the PMUY subsidy scheme?
The government has reduced the number of subsidised LPG cylinder refills under PMUY from nine per year to four per year.
Q2. How much subsidy will PMUY beneficiaries receive?
Eligible beneficiaries will continue to receive Rs 300 subsidy per 14.2-kg LPG cylinder for the first four refills annually.
Q3. What is the maximum annual subsidy available now?
The annual subsidy support has been capped at Rs 1,200 per household.
Q4. Why has the government reduced subsidised refills?
The decision was taken due to rising global LPG prices, increasing subsidy costs, and growing losses faced by oil marketing companies.
Q5. What is the current LPG cylinder price in Delhi?
As of June 7, the price of a 14.2-kg domestic LPG cylinder in Delhi is Rs 942, while PMUY beneficiaries pay around Rs 642 after subsidy.
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