The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved a targeted subsidy of Rs 300 per 14.2 kg LPG cylinder for up to nine refills per year for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) during the financial year 2025-26. The subsidy will be proportionately pro-rated for 5 kg cylinders, with an estimated expenditure of Rs 12,000 crore.

Launched in May 2016, the PMUY aims to provide deposit-free LPG connections to adult women from economically weaker sections across India. As of July 1, 2025, approximately 10.33 crore connections have been provided under the scheme nationwide.

The LPG connection provided to PMUY beneficiaries includes a security deposit for the cylinder, pressure regulator, Suraksha Hose, domestic gas consumer card booklet, and installation charges, all free of cost. Under the Ujjwala 2.0 scheme, the first refill and stove are also given free to beneficiaries, with expenses borne by the central government through public sector oil marketing companies.

To make LPG more affordable and encourage sustained use, the government introduced a targeted subsidy in May 2022 of Rs 200 per 14.2 kg cylinder for up to 12 refills annually, also pro-rated for 5 kg cylinders. This subsidy helps shield beneficiaries from international LPG price fluctuations, as 60 percent of India's LPG demand is met through imports.

In October 2023, this subsidy was raised to Rs 300 per 14.2 kg cylinder for up to 12 refills per year. The approval for FY 2025-26 continues this support but adjusts the number of subsidized refills to nine per year.

The average per capita consumption (PCC) of LPG among PMUY consumers has seen significant improvement, rising from about 3 refills in 2019-20 to 4.47 refills during FY 2024-25, demonstrating the scheme's success in promoting clean cooking fuel usage among targeted households.