In a move aimed at sustaining access to affordable clean cooking fuel for low-income households, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of a targeted subsidy of ₹300 per 14.2 kg LPG cylinder for beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) during the financial year 2025–26. The subsidy will be applicable for up to nine refills per year, with an estimated annual expenditure of ₹12,000 crore.
The PMUY, launched in May 2016, provides deposit-free LPG connections to adult women from poor households, along with a free first refill, stove, and installation. The costs are borne jointly by the Government of India and Oil Marketing Companies (OMCs). The scheme is implemented through public sector OMCs—Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL).
As of July 1, 2025, PMUY has achieved a significant milestone, with 10.33 crore active connections across the country. By replacing traditional cooking fuels like firewood and kerosene, PMUY has contributed to improved health outcomes, reduced indoor air pollution, and greater convenience for women, especially in rural and remote areas.
To shield PMUY beneficiaries from global LPG price fluctuations, the government introduced a targeted subsidy of ₹200 per cylinder in May 2022. In October 2023, this was further increased to ₹300 in response to continued international price pressures, ensuring that the most vulnerable households could continue to afford LPG refills without financial hardship.
The continuation of the ₹300 subsidy into FY 2025–26 will provide substantial relief to PMUY households, especially in light of volatile global energy markets. The government’s intervention ensures that clean cooking fuel remains within reach for millions of families, preventing a return to polluting and labor-intensive traditional fuels.
Notably, average per capita LPG consumption among PMUY households has shown steady improvement—a key indicator of the scheme’s success. From 3 refills per household in FY 2019–20, usage has risen to 4.47 refills in FY 2024–25. This growth reflects greater acceptance of LPG as the primary cooking fuel and highlights the positive behavioral shift towards cleaner energy.
The ₹12,000 crore subsidy will be directly transferred to OMCs to offset the reduced selling price for beneficiaries, thereby maintaining supply chain stability while keeping refills affordable. Officials emphasize that the policy not only addresses immediate household needs but also supports long-term national goals under initiatives like the National Clean Energy Mission and Energy Transition Strategy, by reducing dependence on biomass-based cooking.
Going forward, the government aims to further enhance awareness about the health and environmental benefits of LPG usage, strengthen last-mile delivery in remote areas, and explore complementary clean cooking technologies.
By extending the targeted subsidy for another year, the Union Cabinet has reaffirmed its commitment to women’s empowerment, public health, and environmental sustainability, ensuring that the gains of the PMUY are consolidated and expanded for the benefit of over ten crore households across India
