Big Change in PM Ujjwala Yojana: Only 9 Subsidized LPG Cylinders in a Year

Key Highlights

• Subsidized LPG cylinders reduced from 12 to 9 per year under the PM Ujjwala Yojana.

• Beneficiaries will lose the ₹900 annual subsidy due to the change.

• Subsidy of ₹300 per cylinder remains unchanged for 9 refills.

• Govt allocates ₹12,060 crore for Ujjwala scheme in FY2026.

• ₹30,000 crore compensation approved for oil companies to cover losses.

The government has made a major change in the Pradhan Mantri Ujjwala Yojana (PMUY), reducing the number of subsidized LPG cylinders from 12 to 9 per year. This decision will affect crores of poor and needy families who were earlier getting 12 subsidized cylinders annually.

What is the New Change?

Under the new rule, beneficiary families will now receive a subsidy on only 9 refills per year, instead of the earlier 12. The remaining three cylinders will have to be purchased at full market price. The subsidy amount remains the same at ₹300 per cylinder.

• Earlier annual subsidy: 12 × ₹300 = ₹3,600

• New annual subsidy: 9 × ₹300 = ₹2,700

• Annual loss in subsidy: ₹900 per family

This means every Ujjwala family will now get ₹900 less subsidy in a year.

Why the Government Took This Decision

Oil marketing companies (Indian Oil, Bharat Petroleum, Hindustan Petroleum) were selling LPG cylinders below cost, which caused huge losses. To cover these losses, the government reduced the number of subsidized cylinders and will use the saved funds to help these companies.

The Union Cabinet has approved ₹30,000 crore as cash compensation for the oil companies, to be paid in 12 installments. The first installment is expected in September–October 2025. Out of this, ₹15,000 crore will be paid in FY26 and the rest in FY27. This phased payment will keep the fiscal deficit impact limited to the targeted 4.4% of GDP for FY26.

Budget Allocation for 2026

The government has allocated ₹12,060 crore for the Ujjwala scheme for FY2026. Despite the reduced number of subsidized cylinders, crores of beneficiaries will still get relief through the continued subsidy.

Subsidy Amount Remains the Same

The subsidy rate, which started at ₹200 per cylinder when the scheme was launched in 2016, has now increased to ₹300 per cylinder. This amount will continue for all 9 subsidized refills under the scheme.

Increase in LPG Usage Over the Years

Since the launch of PMUY, LPG usage among beneficiaries has increased steadily:

• 2019–20: 3 cylinders per year (average)

• 2022–23: 3.68 cylinders per year

• 2024–25: 4.47 cylinders per year

This shows more families are shifting towards clean cooking fuels, promoting health and reducing indoor air pollution.

About Ujjwala Yojana and Ujjwala 2.0 Benefits

Launched in 2016, PMUY aimed to provide free LPG connections to women from below the poverty line (BPL) families. In 2021, Ujjwala 2.0 was introduced, offering additional benefits such as:

• Free gas connection

• Free first refill and gas stove

• No initial fees for the regulator, pipe, DGCC booklet, and installation

So far, over 10.33 crore LPG connections have been provided under the scheme. The subsidy amount for refills is directly transferred to the beneficiary’s bank account, ensuring transparency and eliminating middlemen.

Also Read: Bumper Subsidy on Natural Farming in Himachal – 37,000 Farmers Already Benefited

CMV360 Says

The reduction from 12 to 9 subsidized cylinders under the PM Ujjwala Yojana will save the government funds to help oil companies recover from losses. While beneficiaries will lose ₹900 annually in subsidy, they will still get relief through the continued ₹300 per cylinder benefit for 9 refills, along with the existing advantages of the Ujjwala scheme.