Ujjwala Scheme: Govt Keeps Rs 300 LPG Subsidy Alive For Beneficiaries In FY25 - All You Need To Know

Ahead of the general elections, the extension of Rs 300 per LPG cylinder subsidy to poor women under the Ujjwala Yojana for the next fiscal starting April 1 was announced by the government on Thursday.

The subsidy had been increased from Rs 200 per 14.2-kg cylinders for up to 12 refills per year to Rs 300 per bottle in October last year.

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Government Extends Rs 300 LPG Subsidy

The Rs 300 per cylinder subsidy was for the current fiscal, ending on March 31. It has been decided by the Cabinet Committee on Economic Affairs (CCEA) to extend this subsidy to 2024-25, as informed by Union Minister Piyush Goyal to reporters. The move, expected to benefit nearly 10 crore families, will cost the government Rs 12,000 crore. The general elections are due in April-May.

To ensure the availability of Liquified Petroleum Gas (LPG), a clean cooking fuel, to rural and deprived poor households, the government launched the Pradhan Mantri Ujjwala Yojana (PMUY) in May 2016 to provide deposit-free LPG connections to adult women of poor households. While the connection was provided for free, the beneficiaries had to purchase LPG refills at market price.

As fuel prices soared, a Rs 200 per cylinder subsidy was provided to PMUY beneficiaries in May 2022. This was increased to Rs 300 in October 2023. Ahead of assembly elections in five states, including Madhya Pradesh and Rajasthan, cooking gas prices were cut by Rs 200 per cylinder in late August by the government. Following this, the LPG cylinder price came down to Rs 903.

For Ujjwala beneficiaries, the price was Rs 603 after considering the Rs 300 per cylinder subsidy, which is directly paid into the bank accounts of connection holders. The continuous use of LPG is encouraged among PMUY consumers through targeted support. The average LPG consumption of PMUY consumers increased by 20 per cent from 3.01 refills in 2019-20 to 3.68 in 2021-22. All PMUY beneficiaries are eligible for the targeted subsidy scheme.