The Union Cabinet has sanctioned ₹12,060 crore for the Pradhan Mantri Ujjwala Yojana (PMUY), ensuring that over 10 crore beneficiaries will continue to receive LPG cylinders at a subsidized rate of ₹300 less than market prices.
In Delhi, a 14.2 kg domestic LPG cylinder currently costs ₹853 for regular consumers. Under PMUY, eligible families pay just ₹553 after the subsidy. Prices vary across states depending on local taxes and transportation costs.
Scheme Marks Nine Years
Launched in May 2016, PMUY completed nine years earlier this year. Beneficiaries are entitled to a maximum subsidy of ₹300 per refill for up to nine 14.2 kg cylinders annually. For 5 kg cylinders, the benefit is provided proportionately. The move is aimed at making clean cooking fuel more affordable for low-income households and ensuring consistent usage despite fluctuations in global prices.
Financial Support for Oil Marketing Companies
Union Minister Ashwini Vaishnaw also announced that the government has approved ₹30,000 crore in assistance to three public sector oil marketing companies—Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited—to offset under-recoveries.
Vaishnaw said the support takes into account the current geopolitical situation and volatility in the oil and gas sector. The Ministry of Petroleum and Natural Gas will oversee the distribution of compensation, which will be paid in 12 installments.
Shielding Consumers from Price Shocks
According to the government, international LPG prices have remained elevated through 2024–25. To shield households from these fluctuations, OMCs have borne significant losses while continuing to supply domestic LPG at lower prices nationwide. Officials said the new funding will help sustain this price stability without passing the burden onto consumers.