Cabinet approves Rs 12,000 crore subsidy for Ujjwala Yojana consumers

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.

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the continuation of the targeted subsidy for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for 2025-26, allocating Rs 12,000 crore for the scheme.

Under the decision, PMUY consumers will receive a subsidy of Rs 300 per 14.2 kg LPG cylinder for up to nine refills a year, with a proportionate benefit for 5 kg cylinders. The move aims to make LPG more affordable for low-income households and ensure continued usage despite volatility in global prices.

Launched in May 2016 to provide deposit-free LPG connections to women from poor households, PMUY now covers over 10.33 crore connections across India. The scheme includes a free cylinder deposit, regulator, hose, consumer card, installation, and—under Ujjwala 2.0—the first refill and stove at no cost to beneficiaries.

Government data shows a steady rise in LPG consumption under PMUY, with per capita refills increasing from around 3 in 2019-20 to 4.47 in 2024-25. The subsidy will be available in the next financial year to shield households from international LPG price swings and support clean cooking fuel adoption.