Ujjwala LPG subsidy: Subsidised cylinder quota reduced from 9 to 4; who will be affected?

The government has limited the Rs 300 LPG subsidy under the Pradhan Mantri Ujjwala Yojana (PMUY), one of its flagship schemes aimed at providing clean cooking fuel to poor households.

Under the revised arrangement, PMUY beneficiaries will receive a subsidy of Rs 300 per cylinder on the first four refills every year. Earlier, the subsidy was available on up to nine refills annually.

The change comes days after domestic LPG prices were increased by Rs 29 per cylinder. Government officials have said the revised entitlement broadly reflects the average annual consumption of Ujjwala households.

Ujjwala LPG subsidy: What has changed?

The Ministry of Petroleum and Natural Gas has said that Ujjwala beneficiaries will continue to receive a subsidy of Rs 300 per cylinder. However, the benefit will now be limited to the first four refills in a year.

This means beneficiaries will receive the Rs 300 subsidy on only the first four LPG refills each year, compared with nine subsidised refills earlier.

According to the government, the average annual consumption of a typical Ujjwala household is around four to five cylinders, which is why the revised entitlement has been aligned with usage patterns.

Who will be affected by the reduced LPG subsidy quota?

The biggest impact will be on Ujjwala beneficiaries who consume more than four LPG cylinders in a year.

These households can continue purchasing additional cylinders, but they will not receive the Rs 300 subsidy on refills beyond the first four cylinders.

Families whose annual LPG consumption remains within four refills are unlikely to see a significant impact, as they will continue to receive subsidy support on all eligible refills.

How much subsidy do Ujjwala beneficiaries get now?

The subsidy amount remains unchanged at Rs 300 per cylinder.

Since the benefit is now restricted to four refills a year, the maximum annual subsidy available to a PMUY beneficiary will be Rs 1,200.

The subsidy is transferred directly to the beneficiary's bank account through the Direct Benefit Transfer (DBT) mechanism.

Current LPG cylinder price for Ujjwala customers

Following the latest price revision, a 14.2 kg domestic LPG cylinder costs Rs 942 in Delhi.

After accounting for the Rs 300 subsidy, an eligible PMUY beneficiary effectively pays Rs 642 for each subsidised refill.

The government has said that despite recent price increases, Indian households continue to pay among the lowest cooking gas prices globally.

Why did the government reduce the subsidised cylinder quota?

According to government officials, the decision is based on average consumption patterns among Ujjwala beneficiaries.

The Petroleum Ministry has said the average annual consumption of a typical Ujjwala household is around four to five cylinders. The revised subsidy structure is intended to match this average consumption level.

Officials have also pointed to rising global LPG prices and higher import costs as factors putting pressure on domestic fuel pricing.

PM Ujjwala Yojana eligibility criteria

To qualify for a PMUY connection, an applicant must:

• Be a woman aged 18 years or above
• Belong to a poor household
• Not have an existing LPG connection in the household
• Meet the eligibility conditions prescribed under the scheme

The scheme provides deposit-free LPG connections to eligible women from economically weaker households.

How to apply for PM Ujjwala Yojana

Eligible applicants can apply online through the PMUY portal or visit a nearby Common Service Centre (CSC) for assistance.

Applications can also be submitted offline at the nearest LPG distributorship of oil marketing companies.

Applicants are required to provide Aadhaar details, bank account information, proof of address and family composition documents along with the prescribed application form.

What does the change mean for beneficiaries?

The reduction in subsidised refills means households consuming more than four LPG cylinders a year will have to pay the applicable retail price without the Rs 300 subsidy for additional refills.

While the subsidy amount remains unchanged, the maximum annual benefit available under the scheme is now Rs 1,200 per beneficiary.

For households with higher LPG consumption, the change could lead to higher cooking fuel expenses over the course of the year. Families that use four or fewer subsidised refills annually are unlikely to experience a major impact.