New Delhi: In a major policy update, the Central Government has reduced the annual quota of subsidised liquefied petroleum gas cylinders under the Pradhan Mantri Ujjwala Yojana from nine to just four. This decision is expected to have a direct impact on approximately 10.5 crore beneficiaries across the country.
Families enrolled in the flagship welfare programme will now receive the additional government subsidy on only four domestic cylinders per year. When the scheme was launched in 2016, it originally provided up to twelve subsidised cylinders annually. The government reduced this quota to nine last year before bringing it down further to four.
Explaining the rationale behind the move, Praveen Mal Khanooja, Additional Secretary in the Ministry of Petroleum and Natural Gas, stated that the revised cap closely matches the average annual gas consumption of Ujjwala beneficiaries. He emphasized that the government aims to provide financial support based on the actual requirements of these households.
The targeted subsidy mechanism was introduced in May 2022 at two hundred rupees per cylinder and was subsequently increased to three hundred rupees in October 2023. The subsidy amount is directly credited to the bank accounts of the consumers. Following two recent price revisions, a standard 14.2 kg domestic gas cylinder currently costs 942 rupees in the national capital. After applying the subsidy, Ujjwala consumers effectively pay around 642 rupees for a refill.
A government official noted that supplying a single cylinder costs the authorities roughly 1600 rupees. Through the subsidy program, beneficiaries receive an assistance of nearly 1000 rupees per cylinder. Official data indicates that the government has disbursed around 52000 crore rupees in subsidies since 2022.
Addressing concerns over rising fuel costs, Khanooja pointed out that domestic cooking gas prices in India remain lower than global market rates. He attributed the current situation to the ongoing crisis in the Middle East, which has triggered severe fluctuations in international crude oil and gas prices. As a result, state run petroleum companies are currently absorbing a loss of about 700 rupees on every cylinder sold to consumers.