Centre expands Rs 300 LPG subsidy for Ujjwala beneficiaries till March 2025

The move, which is likely to benefit nearly 10 crore families, will cost the government Rs 12,000 crore.

Digital Desk: The government, citing a gift for women one day ahead of International Women's Day on March 8, said that the Pradhan Mantri Ujjwala Yojana (PMUY) scheme will extend its Rs 300 per LPG cylinder subsidy to impoverished women till March 2025. 

In October of last year, the government increased the subsidy to Rs 300 per bottle from Rs 200 for 14.2 kg cylinders, with up to 12 refills allowed annually. The Rs 300 per cylinder subsidy was for the current fiscal, which ends on March 31.

Today, the Union Cabinet approved the continuation of the targeted subsidy of Rs. 300 per 14.2 kg cylinder (and proportionately pro-rated for 5 kg cylinder) for up to 12 refills per year. 

The move, which is likely to benefit nearly 10 crore families, will cost the government Rs 12,000 crore.

The government started the Pradhan Mantri Ujjwala Yojana (PMUY) in May 2016 to give adult women of low-income households deposit-free LPG connections to make liquefied petroleum gas (LPG), a clean cooking fuel, accessible to rural and impoverished homes.

The recipients had to pay market pricing for LPG refills, even if the connection was free.

In May 2022, the government gave PMUY beneficiaries a subsidy of Rs 200 per cylinder due to the sharp increase in gasoline prices. In October 2023, this was raised to Rs 300.

After accounting for the Rs 300 per cylinder subsidy that is sent directly into connection holders' bank accounts, the cost for Ujjwala recipients was Rs 603.