The Union government has decided to reduce the number of subsidised LPG cylinder refills available under the Pradhan Mantri Ujjwala Yojana (PMUY) from nine per year to four. The decision comes amid rising global fuel prices and increasing losses faced by oil marketing companies.
The Ministry of Petroleum and Natural Gas said eligible PMUY beneficiaries will continue to receive a subsidy of Rs. 300 on each 14.2-kg LPG cylinder for the first four refills every year. This means a household can receive subsidy support of up to Rs. 1,200 annually, NDTV reported.
Rising LPG costs behind move
Additional Secretary in the Ministry of Petroleum and Natural Gas Praveen Khanooja said in a press briefing on Monday that the cost of supplying a domestic LPG cylinder has risen sharply.
According to the ministry, the actual cost of supplying a domestic LPG cylinder has crossed Rs. 1,600. Oil marketing companies are currently losing around Rs. 700 on every cylinder sold, as reported by NDTV.
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Officials said the increase in losses is mainly due to higher international LPG prices. The Saudi Contract Price (CP), which serves as a benchmark for LPG imports, has increased by around 46 per cent since February.
Subsidy to continue for eligible beneficiaries
Khanooja said PMUY consumers currently pay Rs. 642 for a 14.2-kg LPG cylinder in Delhi, while non-Ujjwala consumers pay Rs. 942 for the same cylinder.
He noted that even general consumers are purchasing LPG at prices lower than the actual market-linked cost, with government support helping shield consumers from rising global prices.
Officials said the reduction in subsidised refills is consistent with current consumption patterns among beneficiaries. According to ministry data, an average Ujjwala household uses around four to five LPG cylinders annually.
The government maintained that subsidy support for PMUY beneficiaries will continue, even as it seeks to manage the growing financial burden caused by rising international fuel prices.
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FAQs:
1. How many subsidised LPG refills will Ujjwala beneficiaries now receive annually?
Eligible PMUY households will receive a subsidy on the first four LPG refills each year.
2. Why has the government reduced the number of subsidised refills?
The move comes amid rising global LPG prices and growing losses for oil marketing companies.
