Ujjwala scheme beneficiaries face sharp cut in subsidised LPG cylinders

The government has cut the annual quota of subsidised cooking gas cylinders for beneficiaries of the Ujjwala scheme. Under the Pradhan Mantri Ujjwala Yojana (PMUY), households will now receive only four cylinders at reduced rates, down from nine last year. This follows a steady decline from the original entitlement of 12 cylinders when the scheme began. When the PMUY scheme launched, beneficiaries could buy up to 12 subsidised 14.2-kg LPG cylinders each year. The quota was later reduced to nine in 2023 and has now been halved again to four. This adjustment aligns with the average annual consumption of PMUY households, which stands at around four cylinders.

Rising international prices have pushed the cost of supplying a domestic LPG cylinder beyond Rs 1,600. Despite this, oil companies still incur losses of roughly Rs 700 per cylinder. In Delhi, the retail price of a 14.2-kg cylinder has climbed by Rs 89 in the last three months, reaching Rs 942. To ease the burden, the government introduced a Rs 200 subsidy per cylinder in May 2022, later raising it to Rs 300 in October 2023. With this support, PMUY beneficiaries now pay Rs 642 for each cylinder. Since 2022, the government has allocated Rs 52,000 crore in subsidies for LPG, petrol, and diesel.

The latest reduction brings the subsidised quota in line with actual household usage. Beneficiaries will now receive four cylinders annually at a discounted rate of Rs 642 each. The move comes as the government continues to manage rising fuel costs and subsidy expenses.