Govt Likely To Extend LPG Cylinder Subsidy Under Ujjwala Yojana By One Year

New Delhi: The Central government is likely to extend the subsidy on cooking gas under the Pradhan Mantri Ujjwala Yojana (PMUY) by another year to March 31, 2025, reports said on Thursday.

Currently, apart from the payout for new connections, the government pays Rs 300 for every liquified petroleum gas (LPG) cylinder to eligible buyers for up to 12 refills in a year.

The payout was increased from Rs 100 a cylinder to Rs 300 in October 2023.
The price of a 14.2 kg LPG cylinder now in New Delhi is Rs 903. Whereas, the cost of an LPG cylinder in Mumbai is Rs 902.5.

The extension of the subsidy by a year may cost the government an additional Rs 12,000 crore, according to sources.

Under the Ujjwala scheme, the government transfers cash of Rs 1600 for every new gas connection with a 14.2 kg cylinder to eligible candidates. The payout is Rs 1150 for a 5 kg cylinder.