Ahead of elections, Govt extends PMUY Rs 300 LPG subsidy

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Ahead of general elections due in April May this year, the Government of India (GoI) on Thursday, March 07, 2024, extended the Ujjwala Yojana to financial year 2024-25 (FY25).  ThePradhan Mantri Ujjwala Yojana (PMUY) beneficiaries will continue to get  LPG subsidy of Rs 300 per cylinder in FY25 as well. The scheme was due to lapse on March 31, 2024. Consumer Affairs Minister, Piyush Goyal said on Thursday, “Ahead of International Womens Day tomorrow, the Cabinet has decided to gift our mothers and sisters an extension of Rs 300 subsidy given under Ujjwala Yojana by one more year.”

Ujjwala beneficiaries will continue to pay Rs 603 per 14.2 kg LPG cylinder for every 12 refills made in FY25 as well. If subsidy is not included in the total price of the LPG cylinder, then, the cost is Rs 903 per cylinder, which people not covered under the Ujjwala Yojana have to pay.

Goyal further said “The Centre would incur Rs 12,000 crore due to its decision. But, this will enable Ujjwal beneficiaries to avail of Rs 300 cheaper LPG cylinders.”

How many PMUY beneficiaries are there?

The government’s latest decision is expected to benefit more than 10 crore beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY).

What is Pradhan Mantri Ujjwala Yojana?

To make Liquified Petroleum Gas (LPG), a clean cooking fuel, available to the impoverished, the government had launched the Ujjwala Yojana in May 2016. Earlier, only the first cylinder of 14.2 kg provided under this scheme was free. But because LPG prices soared in the country, the government in May 2022 started providing  Rs 200 subsidy per cylinder on total of 12 cylinders in a fiscal to the beneficiaries. But later on in October 2023, the government increased per cylinder subsidy to Rs 300.

PIB India on its official X handle (formerly Twitter) tweeted about the PMUY extension:

#Cabinet approves continuation of Rs. 300 targeted subsidy to #PMUjjwala Yojana Consumers till 31st March 2025 up to 12 refills per annum; benefiting approximately 10 crore families

The total expenditure for this will be Rs 12,000 crores. The price of domestic LPG for #PMUY… pic.twitter.com/oDm6YwBeYa

— PIB India (@PIB_India) March 7, 2024