Cabinet Extends Ujjwala Subsidy for 2025-26
The Union Cabinet has approved a ₹300 subsidy for up to nine LPG refills for Pradhan Mantri Ujjwala Yojana beneficiaries, with a total expenditure of ₹12,000 crore.
- The Union Cabinet has approved the continuation of a ₹300 per cylinder subsidy for PMUY beneficiaries for the 2025-26 fiscal year.
- The subsidy will be provided for up to nine LPG refills per year for a 14.2 kg cylinder, with a total expenditure of ₹12,000 crore.
- The scheme, launched in 2016, provides deposit-free LPG connections to women from poor households, with over 10.33 crore connections as of July 2025.
GG News Bureau
New Delhi, 8th Aug: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of a targeted subsidy for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) for the financial year 2025-26. The decision will entail an expenditure of ₹12,000 crore, ensuring that the subsidy of ₹300 per 14.2 kg LPG cylinder continues for up to nine refills annually. The subsidy will also be proportionately pro-rated for 5 kg cylinders.
The PMUY, launched in May 2016, aims to provide deposit-free LPG connections to adult women from poor households. As of July 1, 2025, the scheme has a beneficiary base of approximately 10.33 crore connections across the country. Under the Ujjwala 2.0 scheme, beneficiaries are also provided with their first refill and a stove free of cost, with all costs borne by the government and Oil Marketing Companies (OMCs).
The targeted subsidy was first introduced in May 2022 with an amount of ₹200 per cylinder and was later increased to ₹300 in October 2023. The subsidy’s objective is to protect beneficiaries from fluctuations in international LPG prices, as India imports about 60% of its LPG requirement. The government hopes the subsidy will encourage the sustained use of LPG among beneficiaries, thereby promoting cleaner cooking fuel.
Data from the scheme indicates that the average per capita consumption of LPG among PMUY households has seen a steady increase, rising from about three refills in FY 2019-20 to an estimated 4.47 refills during FY 2024-25, reflecting a positive trend in the adoption of clean energy.
