March 8, 2024: The Union Cabinet chaired by Prime Minister Narendra Modi on March 7 approved the continuation of targeted subsidy of Rs 300 per 14.2-kg cylinder (and proportionately pro-rated for 5-kg cylinder) for up to 12 refills per year to be provided to the beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) during the financial year 2024-25 ((FY25). As on March 1, 2024, there are more than 10.27 crore PMUY beneficiaries.
The total expenditure will be Rs 12,000 crore for financial year 2024-25. The subsidy is credited directly to bank accounts of the eligible beneficiaries.
To make liquified petroleum gas (LPG), a clean cooking fuel, available to the rural and deprived poor households, the government launched the Pradhan Mantri Ujjwala Yojana in May 2016 to provide deposit-free LPG connections to adult women of poor households.
India imports about 60% of its LPG requirement. To shield PMUY beneficiaries from the impact of sharp fluctuations in international prices of LPG and to make LPG more affordable to PMUY consumers, the government started a targeted subsidy of Rs 200/ per 14.2-kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5-kg connections) to the PMUY consumers in May 2022.
In October 2023, the government increased the targeted subsidy to Rs 300 per 14.2-kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5-kg connections). As on February 1, 2024, the effective price of domestic LPG for PMUY consumers is Rs 603 per 14.2-kg LPG cylinder (Delhi).
Average LPG consumption of PMUY consumers has increased by 29% from 3.01 refills in 2019-20 to 3.87 refills (till January 2024) prorated for 2023-24. All PMUY beneficiaries are eligible for this targeted subsidy.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
