Ujjwala LPG subsidy down to first 4 refills amid conflict-driven crude price surge
Earlier, PMUY beneficiaries received a Rs 300 subsidy on the first nine LPG refills annually. The government reduced this to four refills, citing average household consumption of about four cylinders per year.
In a fresh blow for consumers following the latest increase in LPG prices, the Centre has revised the subsidy framework under the Pradhan Mantri Ujjwala Yojana (PMUY), limiting the Rs 300-per-cylinder subsidy to only the first four refills in a year. The move effectively caps annual assistance at Rs 1,200 per beneficiary.
Beneficiaries of the PMUY scheme would earlier receive a Rs. 300-per-cylinder subsidy on the first nine refills a year.
The decision comes shortly after oil marketing companies raised the price of a 14.2-kg domestic LPG cylinder by Rs 29, marking the second price hike in the past three months. The increase has added to household fuel expenses, particularly for low-income families that rely on subsidised cooking gas.
Under the revised arrangement, PMUY beneficiaries will receive a Direct Benefit Transfer (DBT) of Rs 300 for each of the first four LPG refills every year.
Government officials said the change was introduced to better align subsidy payouts with actual consumption patterns, noting that the average Ujjwala household typically uses around four cylinders a year.
The Pradhan Mantri Ujjwala Yojana (PMUY) was launched to provide clean cooking fuel to economically weaker households and has benefited millions of families across the country.
While the subsidy amount per refill remains unchanged, the reduction in the number of eligible cylinders significantly lowers the overall annual support available under the scheme.
Officials also noted that international LPG benchmark prices, particularly the Saudi Contract Price (CP), have increased by about 46 per cent since February, putting additional pressure on fuel retailers and government finances.
Despite the revision, beneficiaries will continue to receive LPG cylinders at heavily subsidised rates. A PMUY consumer currently pays an effective price of around Rs 642 for a 14.2-kg cylinder after accounting for the subsidy, while a general consumer in Delhi pays approximately Rs 942.
DOMESTIC LPG PRICES HIKED
Earlier, domestic LPG prices in the country were raised by Rs 29 per cylinder with effect from June 7, 2026, marking the second increase in the last three months.
Following the revision, the price of a 14.2-kg cooking gas cylinder in Delhi rose from Rs 913 to Rs 942. The hike came as state-run oil marketing companies faced mounting pressure from rising global energy prices, driven largely by the ongoing conflict in West Asia.
Earlier, on March 7, domestic LPG rates were increased by Rs 60 per cylinder after geopolitical tensions in the region disrupted energy markets and triggered a sharp surge in international fuel costs.
GOVERNMENT DEFENDS MOVE
The government has defended its pricing and subsidy policy by pointing to the sharp rise in global LPG costs.
According to the Ministry of Petroleum and Natural Gas, the cost of supplying a domestic LPG cylinder has now climbed to more than Rs 1,600. This has resulted in an under-recovery of roughly Rs 700 on every domestic cylinder sold.
Officials also noted that international LPG benchmark prices, particularly the Saudi Contract Price (CP), have increased by about 46 per cent since February, putting additional pressure on fuel retailers and government finances.
At the same time, the government stressed that India has managed to maintain uninterrupted energy supplies despite global uncertainties.
Officials said the country continued to receive petroleum cargoes through the Strait of Hormuz and that there is currently no shortage of LPG or any other petroleum product in the domestic market.
The revised subsidy structure is expected to reduce the government's subsidy burden while continuing support for households that depend on LPG for cooking.
In a fresh blow for consumers following the latest increase in LPG prices, the Centre has revised the subsidy framework under the Pradhan Mantri Ujjwala Yojana (PMUY), limiting the Rs 300-per-cylinder subsidy to only the first four refills in a year. The move effectively caps annual assistance at Rs 1,200 per beneficiary.
Beneficiaries of the PMUY scheme would earlier receive a Rs. 300-per-cylinder subsidy on the first nine refills a year.
The decision comes shortly after oil marketing companies raised the price of a 14.2-kg domestic LPG cylinder by Rs 29, marking the second price hike in the past three months. The increase has added to household fuel expenses, particularly for low-income families that rely on subsidised cooking gas.
Under the revised arrangement, PMUY beneficiaries will receive a Direct Benefit Transfer (DBT) of Rs 300 for each of the first four LPG refills every year.
Government officials said the change was introduced to better align subsidy payouts with actual consumption patterns, noting that the average Ujjwala household typically uses around four cylinders a year.
The Pradhan Mantri Ujjwala Yojana (PMUY) was launched to provide clean cooking fuel to economically weaker households and has benefited millions of families across the country.
While the subsidy amount per refill remains unchanged, the reduction in the number of eligible cylinders significantly lowers the overall annual support available under the scheme.
Officials also noted that international LPG benchmark prices, particularly the Saudi Contract Price (CP), have increased by about 46 per cent since February, putting additional pressure on fuel retailers and government finances.
Despite the revision, beneficiaries will continue to receive LPG cylinders at heavily subsidised rates. A PMUY consumer currently pays an effective price of around Rs 642 for a 14.2-kg cylinder after accounting for the subsidy, while a general consumer in Delhi pays approximately Rs 942.
DOMESTIC LPG PRICES HIKED
Earlier, domestic LPG prices in the country were raised by Rs 29 per cylinder with effect from June 7, 2026, marking the second increase in the last three months.
Following the revision, the price of a 14.2-kg cooking gas cylinder in Delhi rose from Rs 913 to Rs 942. The hike came as state-run oil marketing companies faced mounting pressure from rising global energy prices, driven largely by the ongoing conflict in West Asia.
Earlier, on March 7, domestic LPG rates were increased by Rs 60 per cylinder after geopolitical tensions in the region disrupted energy markets and triggered a sharp surge in international fuel costs.
GOVERNMENT DEFENDS MOVE
The government has defended its pricing and subsidy policy by pointing to the sharp rise in global LPG costs.
According to the Ministry of Petroleum and Natural Gas, the cost of supplying a domestic LPG cylinder has now climbed to more than Rs 1,600. This has resulted in an under-recovery of roughly Rs 700 on every domestic cylinder sold.
Officials also noted that international LPG benchmark prices, particularly the Saudi Contract Price (CP), have increased by about 46 per cent since February, putting additional pressure on fuel retailers and government finances.
At the same time, the government stressed that India has managed to maintain uninterrupted energy supplies despite global uncertainties.
Officials said the country continued to receive petroleum cargoes through the Strait of Hormuz and that there is currently no shortage of LPG or any other petroleum product in the domestic market.
The revised subsidy structure is expected to reduce the government's subsidy burden while continuing support for households that depend on LPG for cooking.
