Government Slashes Ujjwala Scheme Subsidized LPG Cylinder Quota: What You Need to Know
Changes to the Ujjwala Scheme
New Delhi: The government has announced a reduction in the annual allocation of subsidized cooking gas cylinders for participants in the Ujjwala scheme, now limited to four per year. This adjustment aims to align the support with the typical consumption patterns of households, as stated by a senior official on Monday. Initially, when the Pradhan Mantri Ujjwala Yojana (PMUY) was introduced in May 2016, beneficiaries were eligible for 12 subsidized 14.2-kg cylinders annually. This number was decreased to nine last year and has now been further cut to four.
During a press conference, Praveen Mal Khanooja, Additional Secretary in the Ministry of Petroleum & Natural Gas, explained that this new limit reflects the average yearly usage among Ujjwala beneficiaries. To promote the adoption of cleaner cooking fuels and enhance affordability, the government had previously implemented a targeted subsidy of Rs 200 per 14.2-kg LPG cylinder in May 2022, which is credited directly to the beneficiaries' bank accounts after each refill, applicable for up to 12 cylinders each year.
In October 2023, this subsidy was raised to Rs 300 per 14.2-kg cylinder, with similar benefits extended to 5-kg cylinders. The recent cut in the subsidized cylinder quota comes in light of rising LPG prices. In Delhi, the cost of a 14.2-kg cylinder has increased by a total of Rs 89 over two price hikes in the last three months, with the latest adjustment occurring on June 7, bringing the retail price to Rs 942. After factoring in the Rs 300 subsidy, PMUY beneficiaries are left to pay Rs 642 for a 14.2-kg cylinder.