Cabinet approves Rs 300 subsidy extension for PM Ujjawala Scheme

As of 1st March 2024, there are more than 10.27 crore PMUY beneficiaries. The total expenditure will be Rs.12,000 crore for the financial year 2024-25.

Cabinet approves Rs 300 subsidy extension for PM Ujjawala Scheme

New Delhi: The Cabinet has approved the continuation of the targeted subsidy of Rs.300 per 14.2 kg cylinder (and proportionately pro-rated for 5 kg cylinder) for up to 12 refills per year to be provided to the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY) during FY 2024-25.

As of 1st March 2024, there are more than 10.27 crore PMUY beneficiaries. The total expenditure will be Rs.12,000 crore for the financial year 2024-25. The subsidy is credited directly to the bank accounts of the eligible beneficiaries. 

The government launched Pradhan Mantri Ujjwala Yojana in May 2016, to provide deposit-free LPG connections to adult women of poor households and to make LPG, a clean cooking fuel, available to rural and deprived poor households. 

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India imports about 60% of its LPG requirement to facilitate PMUY beneficiaries from the impact of sharp fluctuations in international prices of LPG and to make LPG more affordable to PMUY consumers thereby ensuring sustained usage of LPG. The government has started a targeted subsidy of Rs.200/- per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 kg connections) to the PMUY consumers in May 2022.

In October 2023, the Government increased the targeted subsidy to Rs.300 per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 kg connections). As of 01.02.2024, the effective price of domestic LPG for PMUY consumers is Rs.603 per 14.2 Kg LPG cylinder (Delhi).

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The average LPG consumption of PMUY consumers has increased by 29 percent from 3.01 refills in 2019-20 to 3.87 refills (till January 2024) prorated for 2023-24. All PMUY beneficiaries are eligible for this targeted subsidy. 

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