The government has announced a welcome extension of the Pradhan Mantri Ujjwala Yojana (PMUY) LPG cylinder subsidy. This initiative, aimed at providing clean and affordable cooking fuel to low-income households, will see its subsidy continue for another year, until March 31, 2025.
Subsidy Extension and Beneficiaries:
Under the extended scheme, PMUY beneficiaries will continue to receive a subsidy of Rs 300 per 14.2 kg LPG cylinder. This subsidy is applicable for up to 12 refills per year, bringing significant relief to over 10.27 crore beneficiaries as of March 1, 2024.
Increased Subsidy and Effective Price:
It’s important to note that the subsidy amount was previously Rs 200 per cylinder and was increased to Rs 300 in October 2023. This increase helps offset rising cooking gas prices, making LPG more affordable for PMUY families. With the subsidy applied, the effective price of a domestic LPG cylinder for PMUY consumers in Delhi stands at Rs 603.
Government Expenditure and Increased Consumption:
The government estimates the total expenditure for the PMUY scheme in the financial year 2024-25 to be around Rs 12,000 crore. This investment reflects the government’s commitment to supporting low-income families. Additionally, the scheme has demonstrably increased LPG consumption among beneficiaries. As of January 2024, the average LPG consumption of PMUY beneficiaries has risen by 29% compared to FY20, indicating a positive impact on their access to clean cooking fuel.
