Centre Extends ₹300 LPG Subsidy for PMUY Beneficiaries Through 2025-26

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of a targeted subsidy of ₹300 per 14.2 kg liquefied petroleum gas (LPG) cylinder for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries in the financial year 2025-26. As per the official statement, this support will apply for up to 9 refills annually, with a proportionate rate for 5 kg cylinders, covering over 10 crore households. The scheme will involve an estimated expenditure of ₹12,000 crore.

Subsidy Background and Policy Changes

India imports around 60% of its LPG requirements, making domestic prices sensitive to global market fluctuations. To shield low-income consumers under PMUY, the government began offering a ₹200 per cylinder subsidy in May 2022, valid for up to 12 refills a year. 

This was increased to ₹300 in October 2023 under the same refill limit. For the upcoming financial year, the revised structure offers ₹300 per cylinder but restricts it to 9 refills to ensure targeted and sustainable support.

Impact and Reach of the Pradhan Mantri Ujjwala Yojana

Since its launch in May 2016, PMUY has aimed to provide deposit-free LPG connections to adult women from low-income households, enhancing access to clean cooking fuel. As of 1 July 2025, there are approximately 10.33 crore PMUY connections nationwide. Beneficiaries receive a free connection covering the security deposit, regulator, hose, DGCC booklet, and installation. 

As per the news reports, under Ujjwala 2.0, they also get a complimentary stove and first refill, with all costs borne by the government or Oil Marketing Companies. LPG usage among PMUY households has improved steadily, with average per capita consumption rising from about 3 refills in 2019-20 to 4.47 refills in FY 2024-25.

Read More: Union Cabinet Clears ₹30,000 Crore LPG Compensation to Support OMCs!

Conclusion 

The ₹300 LPG subsidy for FY 2025-26 under PMUY aims to ensure affordable, clean cooking fuel while sustaining adoption and targeting low-income households.

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