India limits PM Ujjwala Yojana LPG subsidy to four cylinders annually

The Indian central government has reduced the annual subsidy quota for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) from nine LPG cylinders to just four. The ₹300 per‑cylinder subsidy will continue, but it will now apply only to the first four refills a year, capping the total annual benefit at ₹1,200 per household.

The move was justified by a 46% rise in international LPG prices and mounting financial pressure on state‑run oil marketing companies, which face under‑recovery losses of about ₹60,000 crore. The cabinet has approved a ₹30,000 crore compensation package for these firms. Domestic LPG cylinder prices have risen to roughly ₹942, while subsidised beneficiaries pay about ₹642 after the ₹300 discount.

The decision aims to align subsidies with actual consumption patterns and manage the fiscal strain caused by soaring global energy prices and related losses on petrol and diesel sales.