LPG Subsidy: LPG rules changed for Ujjwala beneficiaries; what must be done now for the 5th gas cylinder?

PM Ujjwala Yojana: There is major news for the crores of beneficiaries of the Ujjwala Yojana. The government has reduced the number of subsidized LPG cylinders to four; the question now arises: what happens with the fifth cylinder?

PM Ujjwala Yojana: There is significant news for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY). The central government has once again reduced the number of subsidized LPG cylinders. Now, beneficiaries under the Ujjwala Yojana will receive a subsidy on only four cylinders per year. Previously, this number was nine, whereas at the scheme's inception, 12 subsidized cylinders were provided.

What happens with the 5th cylinder?

It is worth noting that Ujjwala Yojana beneficiaries previously received nine subsidized cylinders annually. Now, this number has been reduced to four. Consequently, if a beneficiary books a fifth cylinder after availing the four subsidized ones, they will not receive the ₹300 subsidy on it; they will have to purchase the cylinder at the full market price.

Why was this decision taken?

According to Praveen Mal Khanuja, Additional Secretary in the Ministry of Petroleum and Natural Gas, this decision was made keeping in mind the average annual consumption of Ujjwala beneficiaries. He states that the annual gas consumption of most PMUY families is around this level.

Ujjwala Yojana launched in 2016

The Pradhan Mantri Ujjwala Yojana was launched in May 2016. The objective behind it was to provide free LPG connections to women from poor families and encourage them to use clean fuel.

How much is the subsidy?

Regarding the subsidy, the government currently provides a subsidy of ₹300 on 14.2 kg LPG cylinders to Ujjwala Yojana beneficiaries. This amount is transferred directly to the beneficiaries' bank accounts. In Delhi, the price of a 14.2 kg LPG cylinder is ₹942. Consequently, Ujjwala beneficiaries receive a cylinder for ₹642 after the subsidy is applied; however, they are required to pay the full price for the fifth cylinder onwards.

Government Explains the Reason

According to the government, LPG prices in the international market have risen, and the supply cost of a single cylinder has exceeded ₹1,600. Despite this, the government continues to provide gas to beneficiaries at a lower rate by offering subsidies. Since 2022, approximately ₹52,000 crore has been spent on LPG subsidies.