Cabinet approves continuation of Ujjwala Yojana subsidy for consumers for 2025-26 at Rs 12,000 crore

The Pradhan Mantri Ujjwala Yojana (PMUY), launched in May 2016, aims to provide deposit-free LPG connections to adult women from economically disadvantaged households across India. As of July 1, 2025, approximately 10.33 crore PMUY connections have been distributed nationwide.

Advertisement

Each beneficiary receives an LPG connection without any deposit, which covers the security deposit for the cylinder, pressure regulator, safety hose, domestic gas consumer card booklet, and installation charges. Under the Ujjwala 2.0 scheme, beneficiaries also receive their first stove and refill free of cost.

PMUY recipients are not required to pay for the connection, initial refill, or stove, as these expenses are covered by the Government of India and oil marketing companies (OMCs). India currently imports nearly 60% of its LPG needs.

 To protect PMUY users from volatile international LPG prices and encourage consistent use, the government introduced a targeted subsidy in May 2022, providing Rs 200 per 14.2 kg cylinder for up to 12 refills annually (with proportional adjustments for 5 kg cylinders). This subsidy was increased to Rs 300 per cylinder in October 2023.

The average per capita consumption (PCC) of LPG among PMUY beneficiaries has steadily increased, rising from about three refills in 2019-20 to 3.68 in 2022-23, and reaching approximately 4.47 refills during 2024-25, reflecting greater adoption and sustained usage of LPG in beneficiary households.