Cabinet approves ₹300 LPG subsidy for PMUY beneficiaries in 2025-26

The ₹300 per cylinder subsidy will be provided for up to 9 refills in FY 2025-26, benefiting over 10 crore PMUY consumers and ensuring affordable access to clean cooking fuel

The Union Cabinet, led by Prime Minister Narendra Modi, on Friday approved the continuation of a targeted subsidy of ₹300 per 14.2 kg liquefied petroleum gas (LPG) cylinder for beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY), according to an official statement. 

This subsidy will apply for up to 9 refills per year (with a proportionate rate for 5 kg cylinders) during the financial year 2025-26, involving a total expenditure of ₹12,000 crore. 

Targeted LPG subsidy for PMUY consumers 

India depends on imports for around 60 per cent of its LPG needs. To protect PMUY users from global price changes and to ensure continued and affordable LPG usage, the Government started offering a subsidy of ₹200 per 14.2 kg cylinder in May 2022, covering up to 12 refills annually. This was also applied on a pro-rata basis for 5 kg cylinders. 

 

In October 2023, this targeted subsidy was raised to ₹300 per cylinder, still valid for up to 12 refills per year. 

 

Increase in LPG usage among PMUY households

 

There has been noticeable improvement in LPG usage among PMUY beneficiaries. The average per capita consumption (PCC), which was around 3 refills in 2019-20 and 3.68 refills in 2022-23, rose to approximately 4.47 refills during FY 2024-25.

 

About the Pradhan Mantri Ujjwala Yojana

 

Launched in May 2016, the PMUY aims to provide deposit-free LPG connections to adult women from low-income households across India. As of July 1, 2025, there are approximately 10.33 crore PMUY connections across the country.

 

Each PMUY beneficiary receives a deposit-free connection that includes the security deposit for the cylinder, pressure regulator, Suraksha hose, DGCC booklet, and installation charges.

 

Under Ujjwala 2.0, the first refill and a stove are also given free of cost. The entire cost for these items is covered by the government or Oil Marketing Companies, so beneficiaries do not need to pay anything for the initial setup.