New Delhi: The government announced on Thursday the extension of the Rs 300 per LPG cylinder subsidy to impoverished women under the Ujjwala Yojana for the next fiscal year beginning April 1.
Last October, the government raised the subsidy from Rs 200 per 14.2-kg cylinder for up to 12 refills annually to Rs 300 per bottle. This subsidy, initially set for the current fiscal year ending on March 31, will now be extended until 2024-25, reported PTI.
Union Minister Piyush Goyal stated that the Cabinet Committee on Economic Affairs (CCEA) has decided to extend this subsidy to 2024-25.
As per the PTI report, this move is expected to benefit nearly 10 crore families, incurring a cost of Rs 12,000 crore for the government.
The announcement comes ahead of the general elections scheduled for April-May.
The Pradhan Mantri Ujjwala Yojana (PMUY), launched in May 2016, aims to provide deposit-free Liquified Petroleum Gas (LPG) connections to adult women of poor households, making LPG accessible as a clean cooking fuel.
While the initial connection is provided free of cost, beneficiaries were required to purchase LPG refills at market price. In response to soaring fuel prices, the government provided a Rs 200 per cylinder subsidy to PMUY beneficiaries in May 2022, which was further increased to Rs 300 in October 2023.
Before the assembly elections in five states, including Madhya Pradesh and Rajasthan, the government reduced cooking gas prices by Rs 200 per cylinder in late August. Consequently, the price of an LPG cylinder dropped to Rs 903, with Ujjwala beneficiaries paying Rs 603 after factoring in the Rs 300 per cylinder subsidy, which is directly credited to their bank accounts.
This targeted support scheme encourages continuous use of LPG among PMUY consumers, the PTI report added.
The average LPG consumption of PMUY consumers increased by 20 per cent from 3.01 refills in 2019-20 to 3.68 in 2021-22. All PMUY beneficiaries are eligible for this targeted subsidy scheme.