The central government has announced a reduction in the number of subsidised LPG cylinders provided to beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY). Effective from the next financial year, eligible households will receive 10 subsidised cylinders annually, down from the earlier 12 cylinders. This decision is part of the government's efforts to rationalise subsidy expenditure and ensure that benefits reach the most deserving sections of society.
Details of the Revised Subsidy
Under the revised policy, each Ujjwala beneficiary will be entitled to 10 refills of 14.2 kg LPG cylinders at a subsidised rate per year. The subsidy amount per cylinder will be determined based on the prevailing market price and the fixed subsidised price. The government will continue to bear the subsidy burden for these cylinders, which is expected to save approximately Rs 5,000 crore annually.
Impact on Beneficiaries
The reduction in subsidised cylinders may impact the cooking fuel expenses of rural and low-income households. However, the government has assured that the move will not affect the poorest families, as they often consume fewer than 10 cylinders per year. For those requiring additional cylinders, they can purchase them at market price, which is currently around Rs 1,000 per cylinder in most states.
Background and Rationale
The Ujjwala scheme, launched in 2016, has provided over 10 crore LPG connections to women from below-poverty-line households. The scheme initially offered 12 subsidised cylinders per year, but the government has periodically reviewed the number. The current reduction is attributed to the need to manage fiscal deficits and align subsidies with actual consumption patterns. Officials stated that the average consumption among Ujjwala beneficiaries is around 8 cylinders per year, making the new limit sufficient for most.
Reactions and Concerns
Consumer rights groups have expressed concern that the reduction could burden families that rely heavily on LPG for cooking, especially in colder regions. However, the government has emphasised that the subsidy will remain for the most vulnerable, and the savings will be redirected to other welfare schemes. The Oil Ministry has also announced plans to improve the direct benefit transfer (DBT) mechanism to ensure timely subsidy disbursement.
In addition, the government is promoting the use of clean cooking fuels and energy-efficient stoves to reduce overall consumption. The move is also seen as a step towards gradually reducing LPG subsidies, aligning with global trends of targeting subsidies to the neediest.
