The government has curtailed the number of subsidised LPG cylinder refills available under the Pradhan Mantri Ujjwala Yojana (PMUY), reducing the benefit from nine refills a year to four, as rising global fuel prices continue to increase the cost of supplying cooking gas.
The decision comes against the backdrop of mounting under-recoveries faced by oil marketing companies.
The cost of supplying a domestic LPG cylinder has risen to more than Rs 1,600, while companies are incurring losses of around Rs 700 on every cylinder sold.
Addressing a media briefing on Monday, Additional Secretary in the Ministry of Petroleum and Natural Gas (MoPNG) Praveen Khanooja said eligible PMUY beneficiaries will continue to receive a subsidy of Rs 300 per 14.2-kg cylinder on the first four refills annually.
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This translates into a total subsidy support of Rs 1,200 per household each year.
The official said PMUY consumers currently pay Rs 642 for a 14.2-kg LPG cylinder in Delhi, while general consumers pay Rs 942 for the same cylinder.
He noted that even non-Ujjwala consumers are buying LPG at prices significantly below the actual market-linked cost, with government support effectively cushioning consumers from higher global prices.
According to the ministry, the increase in losses is largely linked to a sharp rise in international LPG prices.
The Saudi Contract Price (CP), a key benchmark for LPG imports, has increased by about 46% since February.
Despite the reduction in subsidised refills, officials said the move is in line with consumption trends, noting that the average Ujjwala household uses around four to five LPG cylinders annually.
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