Lok Sabha Question No. 3281 (UNSTARRED), answered on 2025-03-20
Subject: Subsidy Allocation to LPG Consumers under PMUY
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Dr. M K Vishnu Prasad

## LOK SABHA UNSTARRED QUESTION NO. 3281

## TO BE ANSWERED ON 20 MARCH, 2025

## Subsidy Allocation to LPG consumers under PMUY

3281. Dr. M K Vishnu Prasad:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  the  details  of  the  total  subsidy  allocation  for  LPG  Consumers  under  the  Pradhan  Mantri Ujjwala Yojana (PMUY) and regular connections during the last three years, the current year and for the year 2025-26, year-wise;
- (b) the reasons for unequal distribution of LPG subsidy between regular connections and PMUY connections;
- (c)  whether  there  is  any  plan  to  increase  the  frequency  or  amount  of  subsidy  for  regular connections; and
- (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛ मंũी ( ŵी सुरे श गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

(a) to (d): Pradhan  Mantri  Ujjwala  Yojana  (PMUY)  was  launched  in  May,  2016  with  an objective to provide deposit free LPG connection to adult women from poor households across the country. The target to release 8 crore connections under PMUY was achieved in September 2019. To cover the remaining poor households, Ujjwala 2.0 was launched in August 2021 with a target  to  release  1  crore  additional  PMUY  connections,  which  was  achieved  in  January  2022. Subsequently, the Government decided to release 60 lakh more LPG connections under Ujjwala 2.0  and  the  target  of  1.60  crore  Ujjwala  2.0  connections  was  also  achieved  during  December 2022.  Further,  Government  approved  release  of  additional  75  lakh  connections  under  PMUY Scheme for  the  period  FY  2023-24  to  2025-26  which  has  already  been  achieved  during  July 2024. As on 01.03.2025, there are 10.33 crore PMUY connections across the country.

India imports about 60% of the domestic LPG consumed. Price of LPG in the country is linked to its price in the international market. While the average Saudi CP (international benchmark for LPG pricing) rose by 63% (from US$ 385/MT in July 2023 to US$ 629/MT in February 2025), the  effective  price  for  Pradhan  Mantri  Ujjwala  Yojana (PMUY) consumers for domestic  LPG was reduced by 44% (from Rs. 903 in August 2023 to Rs. 503 in February 2025, by reducing Rs. 200 per 14.2 Kg cylinder on 30th August, 2023 and Rs. 100 per 14.2 Kg cylinder on 9th March, 2024.).

To  make  LPG  more  affordable  to  PMUY  consumers  and  ensure  sustained  usage  of  LPG  by them, in May 2022 Government started a targeted subsidy of Rs.200/- per 14.2 kg cylinder for up to  12  refills  per  annum  (and  proportionately  pro-rated  for  5  Kg  connections)  to  the  PMUY consumers. In October 2023, Government increased the targeted subsidy to Rs.300 per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 Kg connections). All LPG consumers receive domestic LPG at Rs. 803 per 14.2 Kg cylinder (Delhi price). After a targeted  subsidy  of  Rs.  300/cylinder  to  PMUY  consumers,  Government  of  India  is  providing 14.2  Kg  LPG  cylinders  at  an  effective  price  of  Rs.503  per  cylinder  (Delhi  price).  This  is available to more than 10.33 crore Ujjwala beneficiaries, across the country. There is currently no proposal under consideration of Government for increasing the amount of subsidy.

Globally, PMUY is the biggest program of its kind that provides Domestic LPG to more than 100 million poor households at an effective price of just about Rs. 35/Kg. Further, the effective price of domestic LPG cylinder in neighbouring countries as on 01.01.2025 is as below:

| Country   | Domestic LPG (Rs./14.2 kg.cyl.)#   |
|-----------|------------------------------------|
| India     | 503.00*                            |
| Pakistan  | 1094.83                            |
| Sri Lanka | 1231.53                            |
| Nepal     | 1206.65                            |

Source: Petroleum Planning and Analysis Cell (PPAC)

*Effective cost to PMUY beneficiaries in Delhi, effective price is Rs. 803 for non-PMUY consumers

Government launched Direct Benefit Transfer for LPG consumers (DBTL) or PAHAL scheme all over India in January 2015. This was aimed at improving the subsidy administration of LPG across  the  country.  Under DBTL scheme an  LPG consumer gets her/his cylinder at full  retail selling price (RSP) and the applicable subsidy, that is the difference between Retail Selling Price (RSP) and subsidized price, is directly transferred to her/his bank account.

While DBTL scheme subsidy is applicable for all eligible LPG consumers enrolled under DBTL, subsidy under PMUY is targeted towards only poor (PMUY) households. The details of funds allocation and utilization for subsidy on domestic LPG since 2021-22 are given below:

(Rs. in Crore)

| Scheme                                                    | F.Y.    |   Total Allocation | Actuals   |
|-----------------------------------------------------------|---------|--------------------|-----------|
| Direct Benefit Transfer for LPG (DBTL)                    | 2021-22 |               3074 | 177.06    |
| Direct Benefit Transfer for LPG (DBTL)                    | 2022-23 |                180 | 180       |
| Direct Benefit Transfer for LPG (DBTL)                    | 2023-24 |               1460 | 1460      |
| Direct Benefit Transfer for LPG (DBTL)                    | 2024-25 |                500 | 231.39*   |
| Direct Benefit Transfer for LPG (DBTL)                    | 2025-26 |               1500 | -         |
| Pradhan Mantri Ujjwala Yojana (PMUY)                      | 2021-22 |               1618 | 1568.44   |
| Pradhan Mantri Ujjwala Yojana (PMUY)                      | 2022-23 |               8010 | 5663.38   |
| Pradhan Mantri Ujjwala Yojana (PMUY)                      | 2023-24 |               8500 | 8500      |
| Pradhan Mantri Ujjwala Yojana (PMUY)                      | 2024-25 |              12700 | 9892.22*  |
| Pradhan Mantri Ujjwala Yojana (PMUY)                      | 2025-26 |               9100 | -         |
| Compensation to OMCs for under-recoveries on Domestic LPG | 2022-23 |              22000 | 22000     |

2021-22 to 2024-25 - Revised Estimates

2025-26  - Budget Estimates

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