Cabinet approves continuation of Rs 300 targeted subsidy to PM Ujjwala Yojna

NEW DELHI,  Mar 7 : With the general election in the country around the corner, the government approved the continuation of the targeted subsidy of Rs. 300 per 14.2 kg cylinder (and proportionately pro-rated for 5 kg cylinder) for up to 12 refills per year to be provided to the beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) during 2024?25.

As of March 1, 2024, there were more than 10.27 crore PMUY beneficiaries, an official release said.

The decision to continue with the subsidy was approved in the Union Cabinet meeting chaired by Prime Minister Narendra Modi. The total expenditure will be Rs. 12,000 crore for the financial year 2024?25.  The subsidy is credited directly to the bank accounts of the eligible beneficiaries.

To make liquefied petroleum gas (LPG), a clean cooking fuel, available to rural and deprived poor households, the government launched the Pradhan Mantri Ujjwala Yojana in May 2016 to provide deposit-free LPG connections to adult women in poor households.

India imports about 60 percent of its LPG requirement. 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, the 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) for PMUY consumers in May 2022.

In October 2023, the government increased targeted subsidies to Rs. 300 per 14.2 kg cylinder for up to 12 refills per year (and proportionately pro-rated for 5 kg connections). As of February 1, 2024, the effective price of domestic LPG for PMUY consumers is Rs. 603 per 14.2 kg LPG cylinder (Delhi).

Average LPG consumption of PMUY consumers has increased by 29 percent from 3.01 refills in 2019?20 to 3.87 refills (till January 2024) prorated for 2023?24. All PMUY beneficiaries are eligible for this targeted subsidy. (UNI)