Cabinet Approves Rs 12,000-Crore Ujjwala Yojana Subsidy Till 2025-26 | Business News


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PM Narendra Modi’s cabinet approved Rs 12,000 crore subsidy for Pradhan Mantri Ujjwala Yojana consumers for 2025-26.

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Cabinet approves continuation of targeted subsidy for Pradhan Mantri Ujjwala Yojana consumers for 2025-26 at Rs 12,000 crore.

Cabinet approves continuation of targeted subsidy for Pradhan Mantri Ujjwala Yojana consumers for 2025-26 at Rs 12,000 crore.

Prime Minister Narendra Modi-led cabinet has approved the continuation of targeted subsidy for Pradhan Mantri Ujjwala Yojana consumers for 2025-26 at Rs 12,000 crore, as per official notification from the government.

The government approved the targeted subsidy of Rs.300 per 14.2 kg cylinder for up to 9 refills per year (and proportionately pro-rated for 5 kg cylinder) to the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY) during FY 2025-26 at an expenditure of Rs 12,000 crore.

Pradhan Mantri Ujjwala Yojana (PMUY) was launched in May, 2016 with an objective to provide deposit-free LPG connection to adult women from poor households across the country. As on 01.07.2025, there are about 10.33 crore PMUY connections across the country.

All PMUY beneficiaries receive deposit-free LPG connection which includes Security Deposit (SD) of Cylinder, Pressure Regulator, Suraksha Hose, Domestic Gas Consumer Card (DGCC) booklet and installation charges. As per the existing modalities of Ujjwala 2.0, the first refill and stove is also provided free of cost to all beneficiaries. PMUY beneficiaries are not required to make any payments for the LPG connection or the first refill or stove as the cost for these is borne by the Government of India/OMCs.

To shield PMUY beneficiaries from the impact of sharp fluctuations in international prices of LPG and to make LPG more affordable to PMUY consumers, thereby ensuring sustained usage of LPG by them, Government started a targeted subsidy of Rs.200/- per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 kg connections) to the PMUY consumers in May 2022. In October 2023, Government increased targeted subsidy to Rs.300 per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 kg connections).

Average Per Capita Consumption (PCC) of PMUY consumers which was only about 3 refills in 2019-20 and 3. 68 refills in 2022-23 has improved to about 4.47 during FY 2024-25.

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Varun Yadav

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More

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News business Cabinet Approves Rs 12,000-Crore Ujjwala Yojana Subsidy Till 2025-26
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