Cabinet approves targeted subsidy to Pradhan Mantri Ujjwala Yojana consumers

New Delhi: In a relief to the beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY), the Cabinet Committee on Economic Affairs on Friday approved a subsidy of Rs 200 per 14.2 kg cooking has cylinder for up to 12 refills per year to be provided to them.

There are 9.59 crore PMUY beneficiaries as on March 1, 2023.

Officials said that the total expenditure will be Rs 6,100 crore for financial year 2022-23 and Rs 7,680 crore for 2023-24. The subsidy is credited directly to bank accounts of the eligible beneficiaries.

Public sector oil marketing companies, including Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) has already been providing this subsidy since May 22, 2022.

Officials said that there has been a sharp increase in international prices of LPG due to various geopolitical reasons and it is important to shield PMUY beneficiaries from high LPG prices.

They said that targeted support to PMUY consumers encourages them for continuous usage of LPG. It is important to ensure sustained LPG adoption and usage among PMUY consumers so that they can completely switch to cleaner cooking fuel. Average LPG consumption of PMUY consumers has increased by 20 per cent from 3.01 refills in 2019-20 to 3.68 in 2021-22.A All PMUY beneficiaries are eligible for this targeted subsidy.

To make Liquified Petroleum Gas (LPG), a clean cooking fuel, available to the rural and deprived poor households, the Government launched Pradhan Mantri Ujjwala Yojana in May 2016, to provide deposit free LPG connections to adult women of poor households.