Government Lowers Ujjwala Scheme LPG Cap to 4 Cylinders Per Year to Align with Average Household Consumption

As per PTI news report, On June 8, 2026, The Indian government has announced a reduction in the number of subsidised LPG cylinders available to beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) from 12 to 4 per year.  

The decision aims to align with the average household consumption of LPG in beneficiary homes. 

Reduction in LPG Subsidies 

Under the revised guidelines, Ujjwala scheme beneficiaries will now receive only 4 subsidised cylinders annually.  

Each 14.2-kg cylinder will continue to attract a subsidy of ₹300, deducted from the retail price. This revision aligns with average consumption levels among PMUY households, simplifying support while focusing on actual needs. 

Background of the Ujjwala Scheme 

The Pradhan Mantri Ujjwala Yojana was launched in May 2016, aiming to provide deposit-free LPG connections to adult women in poor households.  

Initially entitling beneficiaries to 12 subsidised cylinders annually, the quota was reduced to 9 last year and is now set at 4. The revision seeks to encourage efficient LPG usage while addressing economic constraints. 

Implications of LPG Price Increase 

Recent increases in LPG prices have influenced the government's decision. As of June 7, 2026, the price of a 14.2-kg cylinder in Delhi is ₹942, with the subsidy bringing the cost down to ₹642 for beneficiaries.  

Despite the subsidy, global market conditions have intensified import costs, necessitating these changes. 

Read More: OMCs Face Loss of ₹700 Per LPG Cylinder Even After Price Increase: Government! 

Impact on Beneficiaries and Suppliers 

With the government incurring significant subsidy expenses, approximating ₹52,000 crore since 2022, there is a concerted effort to maintain affordability while mitigating financial losses within the oil sector.  

Oil companies continue to face losses selling LPG cylinders below the international market rate, alongside similar challenges with petrol and diesel. 

Conclusion 

The reduction of subsidised LPG cylinders to 4 annually for Ujjwala beneficiaries reflects efforts to balance affordability with resource constraints. While globally influenced price hikes have shaped policy adjustments, the government's subsidy continues to provide substantial relief to eligible households. 

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