The government has announced a reduction in the number of subsidised LPG cylinder refills provided under the Pradhan Mantri Ujjwala Yojana (PMUY) from nine to four per year. This decision aims to manage escalating subsidy costs due to higher global fuel prices and increased under-recoveries for oil marketing companies. The cost of supplying domestic LPG has surged, with each cylinder now priced at over Rs 1,600, leading to losses of around Rs 700 per cylinder for oil companies.
Addressing the media, Additional Secretary Praveen Khanooja from the Ministry of Petroleum and Natural Gas stated that eligible PMUY beneficiaries will still receive a subsidy of Rs 300 per 14.2-kg cylinder, but only for the first four refills annually. This move effectively limits the annual subsidy support to Rs 1,200 per household under the scheme. In Delhi, PMUY consumers currently pay Rs 642 for a 14.2-kg LPG cylinder, while non-PMUY consumers pay Rs 942 for the same.
Khanooja highlighted that even non-PMUY consumers are shielded from the full impact of global price fluctuations, thanks to government interventions that help households cope with higher international LPG rates. The rise in losses is primarily attributed to a significant increase in global LPG benchmarks, with the Saudi Contract Price (CP) surging by approximately 46% since February. Recently, domestic cooking gas prices were raised by Rs 29 per cylinder, marking the second hike in three months as state-owned oil marketing companies grapple with elevated global energy costs.
