Cabinet Approves Continuation of ₹12000 Crore Targeted Subsidy for Pradhan Mantri Ujjwala Yojana Consumers for FY 2025-26
Launched in May 2016, PMUY was designed to provide deposit-free LPG connections to adult women from poor households across India.
New Delhi, August 8: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of the targeted subsidy under the Pradhan Mantri Ujjwala Yojana (PMUY) for the fiscal year 2025-26, amounting to ₹12,000 crore. This subsidy will provide financial relief to PMUY beneficiaries, offering ₹300 per 14.2 kg LPG cylinder for up to 9 refills annually, with a proportional subsidy for 5 kg cylinders.
Key Highlights
- Targeted Subsidy: ₹300 per 14.2 kg cylinder, with up to 9 refills per year (pro-rated for 5 kg cylinders), for PMUY beneficiaries.
- Expenditure: ₹12,000 crore allocated for the subsidy in FY 2025-26.
- Impact: The subsidy aims to shield PMUY consumers from the impact of international LPG price fluctuations, making LPG more affordable and ensuring sustained usage.
Pradhan Mantri Ujjwala Yojana
Launched in May 2016, PMUY was designed to provide deposit-free LPG connections to adult women from poor households across India. As of July 1, 2025, around 10.33 crore PMUY connections have been established across the country. Beneficiaries receive a full LPG setup, including the cylinder, pressure regulator, safety hose, and installation charges, all free of cost. The first refill and stove are also provided at no cost to the beneficiaries under Ujjwala 2.0.
Targeted Subsidy History
- May 2022: The government introduced a targeted subsidy of ₹200 per 14.2 kg cylinder for up to 12 refills annually.
- October 2023: The subsidy amount was increased to ₹300 per 14.2 kg cylinder for up to 12 refills per year.
- 2025-26: The government has now extended this subsidy, continuing its commitment to support PMUY consumers.
Improved LPG Consumption
The targeted subsidy initiative has led to improved LPG consumption among PMUY beneficiaries. The Average Per Capita Consumption (PCC) of PMUY consumers has steadily increased, rising from about 3 refills in 2019-20 to 3.68 refills in 2022-23. In FY 2024-25, this figure has further improved to approximately 4.47 refills per beneficiary.
Conclusion
This continued subsidy will help ensure that the benefits of PMUY are sustained, making cooking gas affordable for millions of low-income households across India. By shielding beneficiaries from price volatility, the initiative is expected to encourage increased LPG usage, further promoting clean cooking practices and improving the health and well-being of families.
The government’s support for the Ujjwala Yojana underscores its commitment to enhancing the quality of life for disadvantaged communities while contributing to the broader goal of clean energy adoption in the country.
