Lok Sabha Question No. 1647 (UNSTARRED), answered on 2024-12-05
Subject: Affordability of LPG Refills under Ujjwala Yojana
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Dr. Bhola Singh

## LOK SABHA UNSTARRED QUESTION NO. 1647 TO BE ANSWERED ON 05 DECEMBER, 2024

## Affordability of LPG Refills Under Ujjwala Yojana

1647.   Dr. Bhola Singh:

## पेĚोͧलयम एवं Ĥाक ृ Ǔतक गैस मंğी

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

- (a)  whether  the  Government  is  aware  of  the  cases  of  underutilization  of  LPG  connections distributed under the Ujjwala Yojana due to affordability issues;
- (b)  if  so,  the  steps  taken  to  subsidize  refills  and  ensure  consistent  usage  of  clean  energy  for cooking; and
- (c)  whether  the  Government  has  any  future  plans  to  expand  the  scheme  to  cover  additional beneficiaries in rural and underserved regions and if so, the details thereof ?

## ANSWER

## पेĚोͧलयम एवं Ĥाक ृ Ǔतक गैस मंğालय मɅ राÏयमंğी ( Įी सुरेश गोपी )

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

(a)  to  (c):    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  Phase-I  was  achieved  in September, 2019. To cover the remaining poor households, PMUY Phase-2 (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 as on 01.01.2023, the target of 1.60 crore Ujjwala 2.0 connections has already been achieved. 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  in  July  2024.  As  on  01.11.2024,  out  of  total  32.83  crore  domestic  LPG connections in the country, 10.33 crore LPG connections are provided under PMUY.

In order to improve access to LPG across the country, various steps have been taken inter alia, including organizing campaigns for improving awareness about PMUY, organizing melas/camps to  enroll  and  distribute connections,  promotion  through  Out  of  Home  (OOH)  hoardings,  radio jingles, Information, Education and Communication (IEC) Vans etc., spreading awareness about advantages  of  using  LPG  over  other  conventional  fuels  and  safe  usage  of  LPG  through  LPG Panchayats,  enrolment/awareness  camps  under  Viksit  Bharat  Sankalp  Yatra,  facilitation  of consumers  and  their  families  for  Aadhar  enrolment  and  opening  of  bank  accounts  for  getting PMUY connections, simplification of process of getting LPG connection, online application for PMUY connection  at  www.pmuy.gov.in,  nearest  LPG  distributors,  Common  Service  Centres (CSC) etc., option of 5 Kg Double Bottle Connection (DBC), swap option from 14.2 Kg to 5 Kg, provision for Migrant Families to avail new connection on Self-Declaration instead of Proof of Address and  Ration  Card.  Further,  OMCs  are  continuously  commissioning  new  LPG Distributorships,  especially  in  rural  areas.  Since  the  launch  of  PMUY  scheme,  OMCs  have commissioned  7944  Distributorships  (commissioned  during  01.04.2016  to  31.10.2024)  across the country, out of which 7361 (i.e. 93 %) are catering to rural areas.

Since launch of PMUY till financial year 2022-23, Government has been bearing an expenditure of  up  to  Rs.  1600  per  PMUY  connection  for  Security  Deposit  (SD)  of  Cylinder,  Pressure Regulator, Suraksha Hose, DGCC booklet and installation charges. From financial year 2023-24, this  expenditure  has  been  increased  to  Rs.  2,200  per  connection  for  14.2  Kg  Single  Bottle Connection/ 5 Kg Double Bottle Connection & Rs. 1,300 per connection for 5 Kg Single Bottle Connection.

Under PAHAL Scheme, the domestic LPG cylinders are sold at non-subsidised price and the applicable subsidy to the consumers is transferred directly into their bank accounts. Apart from the direct subsidy to consumers, the OMCs have also been compensated Rs 22,000 crore in FY 2022-23 by Government of India to cover the under-recoveries suffered by them in not passing on the high international LPG prices to the domestic LPG consumers.

India imports about 60% of the domestic LPG consumed. Price of LPG in the country is linked to its price in the international market. Government continues to modulate the effective price to consumer for domestic LPG. Average Saudi CP (international benchmark for LPG pricing) rose by 64% (from US$ 385/MT in July 2023 to US$ 632 /MT in November 2024) while on the other hand effective price for Pradhan Mantri Ujjawala Yojana (PMUY) consumers for domestic LPG reduced in India by 44% (from Rs. 903 in August 2023 to Rs. 503 in November 2024).

Government reduced the retail selling price of domestic LPG for all consumers by Rs. 200 per 14.2 Kg LPG cylinder with effect from 30th August, 2023. Government further reduced the RSP of domestic LPG by Rs. 100 per 14.2 Kg cylinder w.e.f. 9th March, 2024. The current RSP of domestic LPG at Delhi is Rs. 803 per 14.2 Kg cylinder.

To  make  LPG  more  affordable  to  PMUY  consumers  and  ensure  sustained  usage  of  LPG  by them, 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 May 2022.  In  October  2023,  Government  has  increased  targeted  subsidy  Rs.300  per  14.2  kg cylinder for up to 12 refills per Annum (and proportionately pro-rated for 5 Kg connections).

The retail selling price of a 14.2 Kg domestic LPG cylinder is currently Rs 803 in Delhi. 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 (in  Delhi). This is available to more than 10.33 crore Ujjwala beneficiaries, across the country.

Further, as a result of various steps taken by Government to improve access and affordability of domestic LPG for PMUY consumers, per capita consumption of PMUY beneficiaries (in terms of no. of 14.2 kg LPG cylinders taken per year) has increased from 3.68 (FY 2021-22) to 3.95 in FY  2023-24,  and  4.34  (on  annualised  basis)  in  FY  2024-25  (upto  October  2024).  PMUY consumption has witnessed a growth of 24.3% during Oct 2024 vis-à-vis October 2023. Total PMUY consumption has risen from 459TMT to 570.7 TMT during this period.

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