Modi Cabinet Extends Ujjwala Gas Subsidy for 2025–26; ₹12,000 Crore Allocated to Benefit Over 10 Crore Families

New Delhi, August 8, 2025 — In a major relief measure for low-income households, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the continuation of targeted LPG subsidies under the Pradhan Mantri Ujjwala Yojana (PMUY) for the financial year 2025–26. The decision will benefit more than 10.33 crore families across India and will entail an expenditure of ₹12,000 crore.

Under the scheme, PMUY beneficiaries will receive a ₹300 subsidy per 14.2 kg LPG cylinder for up to nine refills per year. For households using smaller 5 kg cylinders, the subsidy will be provided on a proportionately prorated basis. The subsidy is directly aimed at making LPG more affordable and ensuring the sustained use of clean cooking fuel in economically weaker households.

Launched in May 2016, PMUY provides deposit-free LPG connections to adult women from poor households. Each connection includes a security deposit for the cylinder, pressure regulator, Suraksha hose, Domestic Gas Consumer Card booklet, and installation charges. Under the Ujjwala 2.0 phase, beneficiaries also receive their first refill and a stove free of cost, with the entire expense borne by the Government of India and Oil Marketing Companies (OMCs).

India imports about 60% of its LPG requirements, making domestic prices highly sensitive to global price fluctuations. To shield PMUY consumers from this volatility, the government first introduced a ₹200 per cylinder targeted subsidy in May 2022 for up to 12 refills annually. This was increased to ₹300 per cylinder in October 2023.

The impact of the subsidy policy has been visible in usage patterns. Average Per Capita Consumption (PCC) of PMUY beneficiaries which stood at just three refills per year in 2019–20 and 3.68 refills in 2022–23 has now increased to 4.47 refills in 2024–25. Officials see this as an indicator of growing acceptance and sustained usage of LPG over traditional, polluting cooking fuels.

With this extension, the Modi government reaffirms its commitment to women’s health, clean energy access, and rural welfare, while aiming to maintain the momentum in India’s shift towards universal adoption of clean cooking solutions.