LPG Price Update: Govt Hikes LPG Subsidy for Ujjwala Beneficiaries From Rs 200 Per Cylinder to Rs 300

In a relief to households, the Union Cabinet on Wednesday, October 4, increased LPG subsidy for Ujjwala beneficiaries to Rs 300 per cylinder from the current Rs 200. Union Minister Anurag Thakur announced this during a briefing on Cabinet decisions.

The price of domestic LPG – the one used in household kitchens for cooking purposes – currently stands at Rs 903 per 14.2-kg cylinder.

All users, including Ujjwala Yojana beneficiaries, buy LPG cylinders at a market rate after the subsidy was discontinued in June 2020. Now, after the latest government decision, for Pradhan Mantri Ujjwala Yojana beneficiaries, a subsidy of Rs 300 will be directly credited to their bank accounts, compared with Rs 200 earlier.

The effective price for Ujjwala Yojana beneficiaries would be Rs 603 per 14.2-kg cylinder.

What is Pradhan Mantri Ujjwala Yojana (PMUY)?

The Ministry of Petroleum and Natural Gas in May 2016 introduced the PMUY as a flagship scheme with an objective to make clean cooking fuels, such as LPG, available to the rural and deprived households which were otherwise using traditional cooking fuels such as firewood, coal and cow-dung cakes. Usage of traditional cooking fuels had detrimental impacts on the health of rural women as well as on the environment.

Those eligible to get an LPG connection under the Pradhan Mantri Ujjwala Yojana include adult woman belonging to SC households, ST households, Pradhan Mantri Awas Yojana (Gramin), most-backward classes, Antyodaya Anna Yojana (AAY), tea and ex-tea garden tribes, forest dwellers, people residing in islands and river islands, SECC households (AHL TIN), poor household as per 14-point declaration. The applicant must have attained 18 years of age. There should not be any other LPG connections in the same household.

Cash assistance for PMUY connections is provided by Government of India. All PMUY beneficiaries will be provided with first LPG refill and Stove (hotplate) both free of cost along with their deposit free connection by the oil marketing companies (OMCs).