Daijiworld Media Network – New Delhi

New Delhi, Aug 8: In a major boost to household energy support for the poor, the Union Cabinet on Friday approved a Rs 12,060-crore outlay for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) for the current financial year.

The move includes a targeted subsidy of Rs 300 per 14.2 kg LPG cylinder for up to nine refills annually, and proportionately for 5 kg cylinders, as per an official release. The government aims to shield vulnerable sections from global price volatility, especially since India imports nearly 60% of its LPG needs.

Launched in May 2016, the Ujjwala scheme provides deposit-free LPG connections to adult women from low-income households. Under Ujjwala 2.0, the package includes a free cylinder security deposit, regulator, Suraksha hose, DGCC booklet, installation, first refill and stove — all borne by the government and oil marketing companies (OMCs).

To mitigate the impact of rising international LPG prices, the government began offering subsidies in May 2022. Initially fixed at Rs 200 per cylinder for 12 refills annually, the subsidy was enhanced to Rs 300 in October 2023. This targeted relief has started to reflect in consumption patterns. Per capita LPG refill rates rose from three cylinders in 2019–20 to 3.68 in 2022–23 and further to 4.47 in the last fiscal.

In a parallel move, the Cabinet also approved a Rs 30,000-crore compensation package for OMCs — Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation — to offset under-recoveries from domestic LPG sales. This support will help the firms manage crude procurement, LPG imports, debt servicing, and capital investment needs.