The Indian government has reduced the annual subsidized LPG cylinders for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries from nine to four, a decision necessitated by state-owned oil companies incurring approximately ₹700 loss per refill, as stated by a top petroleum ministry official to Hindustan Times. This move follows a recent ₹29 per cylinder price increase, the second in three months, driven by rising global energy costs due to the West Asia crisis, and aligns with a government statement clarifying that PMUY beneficiaries would only receive a ₹300 direct benefit transfer (DBT) subsidy on their first four refills annually. Currently, PMUY beneficiaries effectively pay ₹642 for a 14.2-kg cylinder, significantly less than the ₹942 paid by general consumers in Delhi, despite the actual supply cost exceeding ₹1,600, with the scheme currently covering around 105 million low-income households who traditionally used solid fuels. The subsidy structure has seen changes, with a ₹200 subsidy for up to 12 refills introduced in 2022 and increased to ₹300 in 2023, but the latest development drastically curtails the number of subsidized refills. The Ministry of Petroleum and Natural Gas defended the price hike by emphasizing the link between domestic and international petroleum prices, asserting that the government has absorbed a significant cost burden and that Indian cooking gas prices remain lower than in neighboring countries and several advanced economies.

The Indian government has reduced the annual subsidized LPG cylinders for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries from nine to four, a decision necessitated by state-owned oil companies incurring approximately ₹700 loss per refill, as stated by a top petroleum ministry official to Hindustan Times. This move follows a recent ₹29 per cylinder price increase, the second in three months, driven by rising global energy costs due to the West Asia crisis, and aligns with a government statement clarifying that PMUY beneficiaries would only receive a ₹300 direct benefit transfer (DBT) subsidy on their first four refills annually. Currently, PMUY beneficiaries effectively pay ₹642 for a 14.2-kg cylinder, significantly less than the ₹942 paid by general consumers in Delhi, despite the actual supply cost exceeding ₹1,600, with the scheme currently covering around 105 million low-income households who traditionally used solid fuels. The subsidy structure has seen changes, with a ₹200 subsidy for up to 12 refills introduced in 2022 and increased to ₹300 in 2023, but the latest development drastically curtails the number of subsidized refills. The Ministry of Petroleum and Natural Gas defended the price hike by emphasizing the link between domestic and international petroleum prices, asserting that the government has absorbed a significant cost burden and that Indian cooking gas prices remain lower than in neighboring countries and several advanced economies.

The Indian government has reduced the annual subsidized LPG cylinders for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries from nine to four, a decision necessitated by state-owned oil companies incurring approximately ₹700 loss per refill, as stated by a top petroleum ministry official to Hindustan Times. This move follows a recent ₹29 per cylinder price increase, the second in three months, driven by rising global energy costs due to the West Asia crisis, and aligns with a government statement clarifying that PMUY beneficiaries would only receive a ₹300 direct benefit transfer (DBT) subsidy on their first four refills annually. Currently, PMUY beneficiaries effectively pay ₹642 for a 14.2-kg cylinder, significantly less than the ₹942 paid by general consumers in Delhi, despite the actual supply cost exceeding ₹1,600, with the scheme currently covering around 105 million low-income households who traditionally used solid fuels. The subsidy structure has seen changes, with a ₹200 subsidy for up to 12 refills introduced in 2022 and increased to ₹300 in 2023, but the latest development drastically curtails the number of subsidized refills. The Ministry of Petroleum and Natural Gas defended the price hike by emphasizing the link between domestic and international petroleum prices, asserting that the government has absorbed a significant cost burden and that Indian cooking gas prices remain lower than in neighboring countries and several advanced economies.

The government has reduced the number of subsidised LPG cylinders available annually to beneficiaries of the Pradhan Mantri Ujjwala Yojana from nine to four, a media report said on Monday quoting a top petroleum ministry official. The move comes shortly after domestic LPG prices were raised by ₹29 per cylinder on Saturday, the second increase in three months, amid rising global energy costs linked to the West Asia crisis.

The reduction was hinted at in a recent government statement defending the LPG price hike. The statement clarified that PMUY beneficiaries will receive a direct benefit transfer (DBT) subsidy of ₹300 per cylinder only on the first four refills each year.

Currently, PMUY beneficiaries pay an effective ₹642 for a 14.2-kg LPG cylinder after subsidy, compared to ₹942 paid by general consumers in Delhi. The government noted that the actual supply cost of a cylinder has risen to more than ₹1,600.

Praveen M. Khanooja, an additional secretary in the petroleum ministry, told the Hindustan Times that the reduction became necessary because state-owned oil marketing companies continue to incur losses of around ₹700 on every 14.2-kg LPG refill. The PMUY scheme presently covers about 105 million low-income households.

Launched in May 2016, PMUY aims to provide clean cooking fuel to rural and economically disadvantaged families that traditionally relied on firewood, coal, and cow-dung cakes for cooking.

The subsidy structure has evolved over time. In 2022, the government introduced a subsidy of ₹200 per cylinder for up to 12 refills annually. This was increased to ₹300 per cylinder in 2023, also for up to 12 refills. The latest change significantly reduces the number of subsidised refills available.

Defending the LPG price increase, the Ministry of Petroleum and Natural Gas stated that domestic petroleum product prices are linked to international market trends. The ministry argued that despite rising global prices, the government has absorbed a substantial portion of the cost burden rather than passing it entirely to consumers.

Despite the price hike, the ministry noted, cooking gas prices in India remain significantly lower than those in neighbouring countries and several advanced economies. 

The latest ₹29 increase follows a ₹60-per-cylinder hike announced on March 7, reflecting continued pressure on energy markets due to geopolitical tensions and supply disruptions in West Asia.