LPG subsidy: Ujjwala Scheme: Govt extends Rs 300 LPG subsidy for beneficiaries for FY25

The government has announced the extension of the Rs 300 per LPG cylinder subsidy to poor women under the Ujjwala Yojana for the next fiscal starting April 1. The subsidy was increased from Rs 200 per cylinder last year.

Union Minister Piyush Goyal stated that the Cabinet Committee on Economic Affairs (CCEA) has decided to extend this subsidy until 2024-25. It is expected to benefit nearly 10 crore families and will cost the government Rs 12,000 crore.

The announcement comes ahead of the general elections scheduled for April-May. The Pradhan Mantri Ujjwala Yojana (PMUY) was launched in May 2016 to provide deposit-free LPG connections to adult women of poor households.

While the connection was provided for free, beneficiaries had to purchase LPG refills at market price. In May 2022, the government provided a Rs 200 per cylinder subsidy to PMUY beneficiaries, which was increased to Rs 300 in October 2023.

In late August, cooking gas prices were reduced by Rs 200 per cylinder ahead of assembly elections in five states.

The targeted support to PMUY consumers has led to a 20% increase in LPG consumption. All PMUY beneficiaries are eligible for the targeted subsidy scheme.