The Union Cabinet, led by Prime Minister Narendra Modi, has recently approved a significant financial allocation for the Pradhan Mantri Ujjwala Yojana (PMUY), demonstrating the government’s strong commitment to providing clean cooking fuel to households across India. This crucial decision involves a capital outlay of Rs 12,000 crore specifically for the PM Ujjwala Yojana for the financial year 2025-26. This move is set to further empower millions of women beneficiaries by ensuring continued access to affordable LPG cylinders, a major step towards better health and environmental practices.
Key Approvals and Financial Commitments
The approved capital outlay of Rs 12,000 crore (some reports specify Rs 12,060 crore) is earmarked to continue the targeted subsidy under the PM Ujjwala Yojana. This means that beneficiaries will receive a subsidy of Rs 300 on each 14.2 kg LPG cylinder, covering up to nine refills every year. For those using 5 kg cylinders, a proportionate subsidy will be provided. The scheme, which was launched in May 2016, has successfully connected approximately 10.33 crore households nationwide with deposit-free LPG connections by July 1, 2025, primarily benefiting women from economically weaker sections. This massive outreach highlights the government’s resolve to shift households from traditional, polluting cooking fuels to cleaner alternatives.
In addition to the subsidy for beneficiaries, the Cabinet also sanctioned substantial budgetary support of Rs 30,000 crore for Oil Marketing Companies (OMCs) for the financial year 2025-26. This compensation is crucial for OMCs to cover their under-recoveries on domestic LPG sales, especially given the volatility in global LPG prices. This financial backing ensures that the burden of high international prices does not directly fall on the consumers or significantly impact the operational health of these companies, a fact often highlighted by the Ministry of Petroleum and Natural Gas.
Growing Impact: Consumption Trends
The PM Ujjwala Yojana has not only expanded its reach but has also effectively encouraged increased usage of LPG among its beneficiaries. Data shows a steady rise in the average per capita consumption (PCC) of LPG refills among PMUY consumers.
Let’s look at the consumption pattern:
- In FY 2019-20, the average was approximately 3 refills per year.
- By FY 2022-23, this increased to 3.68 refills.
- Further, in FY 2023-24, it rose to 3.95 refills.
- For FY 2024-25 (till February 2025), the consumption reached approximately 4.43–4.47 refills, reflecting a significant uptake.
This upward trend suggests that the scheme is effectively changing cooking habits and fostering a greater reliance on clean fuel. On average, about 12.6 lakh LPG refills were delivered daily in FY 2024-25 up to February 2025, underscoring the scale of operations.
Understanding the Subsidy Mechanism
The government’s targeted subsidy approach began with an initial subsidy of ₹200 per cylinder in May 2022. This was subsequently increased to ₹300 in October 2023, providing further relief to beneficiaries. Under the Ujjwala 2.0 initiative, all new beneficiaries receive their first refill and a cooking stove completely free of cost, removing initial financial barriers. This progressive approach, as noted by government sources, aims to ensure that clean energy is not just accessible but also consistently affordable. It’s noteworthy that India imports about 60% of its LPG requirement, making such subsidies crucial to insulate domestic consumers from global price fluctuations.
Here’s a snapshot of the subsidy and consumption trends under the PM Ujjwala Yojana:
| Financial Year | Average Per Capita LPG Refills (PMUY Consumers) | Capital Outlay / Subsidy Allocated (Rs crore) | Subsidy Rate (Rs per 14.2 kg Cylinder) | Number of Refills Covered under Subsidy |
|---|---|---|---|---|
| 2019-20 | ~3 refills | N/A | N/A | N/A |
| 2022-23 | 3.68 refills | N/A | ₹200 (introduced May 2022) | Up to 12 refills per year |
| 2023-24 | 3.95 refills | N/A | ₹300 (since October 2023) | Up to 12 refills per year |
| 2024-25 | 4.43 – 4.47 refills | N/A | ₹300 | Up to 9 refills per year (FY 2025-26) |
| 2025-26 (Budget Approved) | Projected continuation | 12,000 – 12,060 crore | ₹300 | Up to 9 refills per year |
Conclusion
The Union Cabinet’s latest approval of Rs 12,000 crore for the PM Ujjwala Yojana underscores the government’s unwavering commitment to ensuring energy access and improving the lives of millions of Indian households. By making clean cooking fuel affordable and accessible, the scheme continues to play a pivotal role in public health, women’s empowerment, and environmental sustainability. This sustained financial backing ensures that the benefits of LPG connections reach the last mile, driving a positive change across the nation.
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