Cabinet approves continuation of Targeted Subsidy for PM Ujjwala Yojana Consumers for 2025-26 at Rs 12,000 crore

The Union Cabinet approved a ₹12,000 crore allocation for FY 2025-26 to continue the ₹300 per LPG cylinder targeted subsidy for PM Ujjwala Yojana beneficiaries, covering up to 9 refills annually. With 10.33 crore connections nationwide, the scheme aims to make LPG affordable, shield poor households from price volatility, and boost clean fuel usage among women.

The Union Cabinet has 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.

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. 

India imports about 60% 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, 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.