In a major change affecting beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY), the government has reduced the number of subsidized LPG cylinders available each year from nine to four.

The move comes after an earlier reduction in the subsidy quota and follows recent increases in domestic LPG prices.

Subsidized Cylinder Quota Reduced Again

The Pradhan Mantri Ujjwala Yojana was launched in 2016 to provide free LPG connections to women from economically weaker households. Initially, beneficiaries were eligible for subsidies on up to 12 LPG cylinders annually.

Last year, the subsidized quota was reduced from 12 cylinders to nine. The government has now further lowered the limit to just four subsidized cylinders per year.

Government Explains the Decision

According to officials from the Ministry of Petroleum and Natural Gas, the revised limit is based on the average annual LPG consumption of Ujjwala households.

The government introduced a targeted LPG subsidy of ₹200 per 14.2-kg cylinder in May 2022 to make clean cooking fuel more affordable. The subsidy was later increased to ₹300 per cylinder in October 2023. The benefit is credited directly to beneficiaries' bank accounts after purchasing eligible refills.

LPG Prices Have Also Increased

The reduction in subsidized cylinders comes at a time when LPG prices have been rising.

Following recent revisions, the retail price of a 14.2-kg domestic LPG cylinder in Delhi has reached ₹942. After adjusting for the ₹300 subsidy, Ujjwala beneficiaries currently pay ₹642 per cylinder.

Officials have stated that despite the increase, the government continues to provide significant support to beneficiaries through direct subsidies.

Impact of Rising Global Energy Prices

Government officials attributed the increase in LPG costs to higher international prices. Supply disruptions and geopolitical tensions in West Asia have pushed up global LPG rates, increasing the cost of imports for India.

The cost of supplying a domestic LPG cylinder is reportedly much higher than the price consumers currently pay, resulting in substantial losses for oil marketing companies.

Subsidy Support Continues

The government says it has spent thousands of crores of rupees on LPG subsidies since 2022 to keep cooking gas affordable for low-income families.

However, with rising global energy costs and pressure on public finances, the reduction in the number of subsidized cylinders is likely to impact households that depend heavily on LPG for daily cooking needs.

Key Changes at a Glance

• Subsidized LPG cylinders reduced from 9 to 4 per year for PMUY beneficiaries.

• Earlier quota was 12 cylinders annually.

• LPG subsidy remains ₹300 per cylinder.

• Current effective price for beneficiaries is ₹642 per 14.2-kg cylinder (based on Delhi rates).

• Government says the revised quota reflects average household consumption patterns.

The latest decision is expected to affect millions of Ujjwala beneficiaries across the country, particularly larger families that consume more than four LPG cylinders annually.