Cabinet approves Rs 12,000 Crore outlay for LPG subsidy to poor, Check Details

March 8 (WD) The Union Cabinet, led by Prime Minister Narendra Modi, has approved a budget of Rs 12,000 crore for the financial year 2024-25 to continue the targeted subsidy program for liquefied petroleum gas (LPG) cylinders under the Pradhan Mantri Ujjwala Yojana (PMUY). This subsidy provides Rs 300 per 14.2 kg LPG cylinder for up to 12 refills per year to eligible beneficiaries. The subsidy amount is directly credited to the bank accounts of beneficiaries.

As of March 1, 2024, there are over 10.27 crore beneficiaries enrolled in the PMUY program. Launched in May 2016, PMUY aims to provide deposit-free LPG connections to adult women from poor households, ensuring access to clean cooking fuel for rural and deprived households.

Given that India imports approximately 60 per cent of its LPG requirement, the subsidy program helps shield PMUY beneficiaries from the impact of international price fluctuations, making LPG more affordable. Initially, in May 2022, the government introduced a targeted subsidy of Rs 200 per 14.2 kg cylinder for up to 12 refills per year. This was increased to Rs 300 per 14.2 kg cylinder in October 2023.

As of February 1, 2024, the effective price of domestic LPG for PMUY consumers stands at Rs 603 per 14.2 kg cylinder in Delhi. The targeted subsidy has led to a notable increase in LPG consumption among PMUY consumers, with average refills rising by 29 per cent from 3.01 refills in 2019-20 to 3.87 refills as of January 2024.

All PMUY beneficiaries remain eligible for this targeted subsidy, ensuring sustained usage of LPG among the intended demographic.