Ujjwala subsidy reset explained: Why the govt has capped support at four refills a year, down from nine

The Union government appears to have quietly tightened the subsidy framework for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY), limiting the ₹300-per-cylinder support to the first four LPG refills in a year. The change, disclosed in a recent statement by the Ministry of Petroleum and Natural Gas, marks another step in the gradual rationalisation of cooking gas subsidies.

While there has been no separate formal notification announcing the reduction, the ministry stated that "Ujjwala households will receive ₹300 per cylinder on the first four refills each year", effectively capping annual direct support at ₹1,200 per beneficiary.

The clarification comes at a time when domestic LPG prices have risen again. State-owned fuel retailers increased the price of a 14.2 kg cooking gas cylinder by ₹29 on June 7, the second hike in three months, citing higher international energy costs.

What has changed?

The latest formulation indicates that PMUY beneficiaries will receive subsidy support only on the first four refills in a financial year. The government says the move reflects the average annual consumption pattern of Ujjwala households, which typically use four to five cylinders annually.

The change follows an earlier reduction in subsidy coverage. In August last year, the government had lowered the number of subsidised LPG refills available to Ujjwala beneficiaries from 12 cylinders to nine.

With the latest revision, the effective number of subsidised refills has fallen further, signalling a shift towards more targeted support rather than universal subsidy coverage.

Why is the government reducing subsidy coverage?

The decision comes against the backdrop of rising LPG procurement costs and increasing fiscal pressures.

According to the petroleum ministry, the cost of supplying a 14.2 kg LPG cylinder has crossed ₹1,600. However, consumers continue to pay significantly less. A regular domestic consumer in Delhi currently pays ₹942 per cylinder, while a PMUY beneficiary effectively pays ₹642 after accounting for the ₹300 subsidy.

The ministry argues that even after recent price increases, LPG consumers continue to receive substantial support through what it describes as an "indirect subsidy". By its estimates, non-Ujjwala consumers receive an implicit subsidy of nearly ₹700 per cylinder, while Ujjwala beneficiaries receive support worth around ₹1,000 per cylinder when direct and indirect benefits are combined.

What does this mean for households?

For millions of PMUY beneficiaries, the immediate impact will depend on consumption levels.

Households using four cylinders or fewer annually are unlikely to see any change in subsidy benefits. However, families consuming more than four cylinders will have to bear the full market price for additional refills after exhausting their annual subsidy quota.

The move could particularly affect larger rural households and families that have increasingly shifted from traditional fuels such as firewood and biomass to LPG for cooking.

Understanding the Ujjwala scheme

Launched in 2016, the PMUY programme was designed to provide clean cooking fuel to poor households, particularly women from economically weaker sections.

Under the scheme, eligible beneficiaries receive a free LPG connection, including a cylinder, regulator, safety hose, documentation, free initial refill and a two-burner stove, without any upfront installation charges.

To qualify, the applicant must be an adult woman from a poor household and must not have an existing LPG connection in the name of any family member. Applications can be submitted online through the PMUY portal or offline through authorised LPG distributors.