Centre Approves 12000 Cr LPG Subsidy to Poor

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 Launched in 2016, the PMUY was designed to provide deposit-free LPG connections to adult women in poor households.

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday, approved the continuation of the targeted subsidy of Rs 300 per 14.2 kg LPG cylinder, for up to 12 refills per year, to be provided for the poor under the Pradhan Mantri Ujjwala Yojana (PMUY) during FY 2024-25.  To subscribe please click tau.id/2iy6f and access our live channel.

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

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

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 February 1, 2024, the effective price of domestic LPG for PMUY consumers is Rs 603 per 14.2 kg LPG cylinder (Delhi).

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

However, they would have to refill the gas cylinders at their own cost, which was subsequently subsidised by Rs 200 in May 2022 and later increased to Rs 300 in October 2023. Today’s announcement keeps the Rs 300 discount active.

India imports about 60 per cent of its LPG requirement. To shield PMUY beneficiaries from the impact of sharp fluctuations in international prices of LPG and to make it more affordable to PMUY consumers thereby ensuring sustained usage by them.

The government 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. s of February 1, 2024, the effective price of domestic LPG for PMUY consumers is Rs 603 per 14.2 kg LPG cylinder.

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