The Indian government has extended the subsidy of ₹200 per LPG cylinder under the Pradhan Mantri Ujjwala Yojana (PMUY) for another year, in response to the soaring prices of petroleum products in the global market.
The Cabinet Committee on Economic Affairs has approved the extension of the subsidy for up to 12 refills per year to be provided to the beneficiaries of PMUY. The move is expected to benefit 9.6 crore families. Anurag Thakur, the Information and Broadcasting Minister, informed the media that the subsidy would cost ₹6,100 crores for the financial year 2022-23 and ₹7,680 crores for 2023-24.
According to the official release, the targeted support to PMUY consumers will encourage them to use LPG continuously, leading to a complete shift to cleaner cooking fuel. The average LPG consumption among PMUY consumers has increased by 20 per cent from 3.01 refills in 2019-20 to 3.68 in 2021-22. The subsidy is directly credited to the bank accounts of eligible beneficiaries.
The Pradhan Mantri Ujjwala Yojana was launched by the government in May 2016 to make liquified petroleum gas (LPG), a clean cooking fuel, available to rural and deprived poor households. The scheme provides deposit-free LPG connections to adult women of poor households. As of March 1, 2023, there were 9.59 crore PMUY beneficiaries.
Anurag Thakur highlighted that the sharp increase in international prices of LPG due to various geopolitical reasons necessitated shielding PMUY beneficiaries from high LPG prices. The extension of the subsidy will provide relief to the beneficiaries of PMUY who may have been affected by the recent price surge in LPG.
The move is expected to ensure sustained LPG adoption and usage among PMUY consumers, making it easier for them to switch to cleaner cooking fuel. With this extension, PMUY beneficiaries can continue to enjoy the subsidy, thus mitigating the impact of high LPG prices.
