Govt reduces subsidised LPG refills under Ujjwala scheme from 12 to 4 a year

The government has announced that it has reduced the number of subsidised LPG cylinder refills under the Pradhan Mantri Ujjwala Yojana (PMUY) from nine per year to four, in a move aimed at containing rising subsidy costs amid higher global fuel prices and widening under-recoveries for oil marketing companies.

The decision comes at a time when the cost of supplying domestic liquefied petroleum gas (LPG) has climbed sharply, with the per-cylinder cost rising to over Rs 1,600, while oil marketing companies are currently incurring losses of around Rs 700 on every cylinder sold.

Addressing a media briefing, Additional Secretary in the Ministry of Petroleum and Natural Gas Praveen Khanooja said eligible PMUY beneficiaries will continue to receive a subsidy of Rs 300 per 14.2-kg cylinder, but only for the first four refills in a year.

This effectively caps annual subsidy support at Rs 1,200 per household under the scheme.

Khanooja also said that PMUY consumers in Delhi are currently paying Rs 642 for a 14.2-kg LPG cylinder, while general consumers are paying Rs 942 for the same cylinder.

He added that even non-Ujjwala consumers are being protected from the full impact of global price volatility, with government interventions cushioning households against higher international LPG rates.

According to the ministry, the increase in losses is primarily linked to a sharp rise in global LPG benchmarks, with the Saudi Contract Price (CP) -- a key reference for imports -- rising by about 46 per cent since February.

Meanwhile, last week, the prices of domestic cooking gas have been increased by Rs 29 per cylinder, marking the second hike in three months as state-owned oil marketing companies continue to face pressure from elevated global energy costs.

With effect from Sunday (June 7), the price of a 14.2-kg domestic LPG cylinder in Delhi has been raised to Rs 942 from Rs 913.

--IANS