Ujjwala Yojana: Government extends ₹300 LPG cylinder subsidy ahead of Lok Sabha elections

Ujjwala Yojana: With Lok Sabha elections around the corner, the government has announced the extension of Ujjwala Yojana, aimed at providing support to women. From April 1, the government will extend the subsidy on Liquefied Petroleum Gas (LPG) cylinders to ₹300 per cylinder for eligible beneficiaries.

Earlier in October of last year, the subsidy was increased from ₹200 to ₹300 per 14.2-kg cylinder for up to 12 refills annually. This enhanced subsidy was applicable for the current fiscal year, ending on March 31. Union Minister Piyush Goyal said that the Cabinet Committee on Economic Affairs (CCEA) has decided to prolong this subsidy until 2024-25.

#WATCH | Union minister Piyush Goyal announces that the Cabinet has approved the continuation of the Rs 300 subsidy to PM Ujjwala Yojana consumers till 31st March 2025. The total expenditure for this will be Rs 12,000 crores, he adds. pic.twitter.com/F65E80v2Hb

— ANI (@ANI) March 7, 2024

This move is anticipated to positively impact nearly 10 crore families and will require a government expenditure of ₹12,000 crores. The extension of the subsidy comes at a crucial time, with general elections scheduled for April-May.

All you need to know about Ujjwala Yojana

The Ujjwala Yojana was launched in May 2016, with the aim to provide deposit-free LPG connections to women from economically disadvantaged households, enabling access to clean cooking fuel. While the initial connection is provided free of cost, beneficiaries were required to purchase subsequent LPG refills at market rates.

Union Cabinet under the leadership of Hon'ble PM Shri @narendramodi ji approves continuation of Rs 300 targeted subsidy to PM Ujjwala Yojana Consumers for 2024-25.
10.27 PMUY beneficiaries to get subsidy directly in their accounts.
Total expenditure for 2024-25 to be Rs.12,000… pic.twitter.com/mT6p1lfAZy

— Kiren Rijiju (मोदी का परिवार) (@KirenRijiju) March 7, 2024

Rise in LPG's market price

As fuel prices increased, the government intervened by providing a ₹200 per cylinder subsidy to PMUY beneficiaries in May 2022. This subsidy was further raised to ₹300 in October 2023. Moreover, in anticipation of assembly elections in states like Madhya Pradesh and Rajasthan, the government reduced cooking gas prices by ₹200 per cylinder in late August.

Following this reduction, the price of an LPG cylinder stood at ₹903, and for Ujjwala beneficiaries, it amounted to ₹603 after the ₹300 subsidy, which was directly transferred to their bank accounts.

Notably, the average LPG consumption among PMUY consumers has increased by 20% from 3.01 refills in 2019-20 to 3.68 in 2021-22. All PMUY beneficiaries are eligible for this targeted subsidy scheme, ensuring continued assistance to those in need.