Cabinet Approves ₹42,060 Crore for LPG Subsidies under Pradhan Mantri Ujjwala Yojana in 2025-26

Pradhan Mantri Ujjwala Yojana (PMUY) keeps helping millions of Indian households by providing affordable LPG connections and subsidies. With the Union Cabinet approving ₹42,060 crore for LPG subsidies in the financial year 2025-26, the scheme remains an important support for poor and middle-class families. This article covers the subsidy benefits, financial support to Oil Marketing Companies (OMCs), and the overall effect of PM Ujjwala Yojana on Indian households.

Subsidy Benefits Under PM Ujjwala Yojana for 2025-26

In 2025-26, beneficiaries of PM Ujjwala Yojana will get a subsidy of ₹300 on each 14.2 kg LPG cylinder refill, for up to nine refills per year. This subsidy helps lower the cost of cooking gas, making it more affordable for about 330 million Indian households, including over 103 million poor families.

Also, PMUY consumers can buy smaller 5 kg cylinders. These smaller cylinders come with a proportionate subsidy, giving flexibility to consumers who may need less LPG at a time.

Financial Support to Oil Marketing Companies

The government has set aside ₹30,000 crore as budget support to state-run Oil Marketing Companies (OMCs) like Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL). This compensation helps these companies cover revenue losses from selling LPG at subsidized rates to middle-class and poor households.

The compensation will be paid in twelve parts by the Ministry of Petroleum and Natural Gas. This financial support makes sure that OMCs can keep buying crude oil and LPG, paying off debts, and maintaining capital expenses, so LPG supply across the country stays uninterrupted.

How PM Ujjwala Yojana Supports Indian Households

Since it started in May 2016, PM Ujjwala Yojana has changed the lives of poor and middle-class families by providing clean cooking fuel connections. As of July 1, 2025, there are about 1,103.3 million PMUY connections across the country. This wide use has improved health, reduced indoor air pollution, and raised the quality of life for millions.

Options for LPG Cylinder Sizes and Subsidy Provisions

To meet the different needs of consumers, the scheme offers 5 kg LPG cylinders along with the standard 14.2 kg cylinders. The subsidy on the smaller cylinders is pro-rated, making it easier for households with lower use to benefit from the scheme without financial pressure.

Government’s Role in Stabilizing LPG Prices

International LPG prices often change because of global market conditions. The government protects consumers from these price changes by regulating domestic LPG prices and providing subsidies. This approach makes sure households keep getting LPG at affordable rates despite global price increases.

By compensating OMCs for their losses, the government keeps these companies financially stable, allowing them to maintain LPG supply without lowering quality or availability.

PM Ujjwala Yojana: Progress Since Launch

Started in 2016, PMUY has become one of the largest inclusive growth schemes worldwide. With over 1.1 billion connections as of mid-2025, the scheme has greatly expanded access to clean cooking fuel across India. The total spending on PMUY has reached ₹52,000 crore till 2024-25, showing the government’s strong commitment to energy access and environmental health.

Particulars	Details
Total Budget Approved for 2025-26	₹42,060 crore
Subsidy per 14.2 kg Cylinder	₹300 (up to 9 refills/year)
Compensation to OMCs	₹30,000 crore
Number of Beneficiary Households	About 330 million
PMUY Connections as of July 2025	1,103.3 million
Official Website	https://www.pmuy.gov.in

For more details and to check your eligibility or apply for PM Ujjwala Yojana, visit the official website above. This scheme continues to be a main part of India’s journey towards clean energy and better living standards.