India cuts Ujjwala LPG subsidy to four cylinders per year

The Indian central government has lowered the annual quota of subsidised LPG cylinders for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries from nine to four. The move, announced by Additional Secretary Praveen Mal Khanooja of the Ministry of Petroleum & Natural Gas, is presented as a step to align subsidies with the average household consumption of four to four‑and‑a‑half cylinders per year.

The subsidy of ₹300 per 14.2‑kg cylinder will continue for only the first four refills, capping the total annual support at ₹1,200 per household. This decision comes amid sharp rises in international LPG prices, driven by West‑Asian supply disruptions, which have pushed the domestic supply cost of a cylinder to over ₹1,600. Retail prices have already risen by ₹89 in the past three months, reaching ₹942 per cylinder in Delhi.

The reduction is intended to alleviate fiscal pressure on the government and state‑run oil marketing companies, which are losing roughly ₹700 on each cylinder sold. Millions of low‑income families relying on the scheme for clean cooking fuel will now receive fewer subsidised refills each year.