BIG Bonanza To Ujjwala Beneficiaries; Govt Extends Rs 300 LPG Subsidy

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New Delhi: The government announced on Thursday that it will continue providing a subsidy of Rs 300 per LPG cylinder to poor women under the Ujjwala Yojana. This subsidy extension will be effective from April 1 for the next fiscal year.

Previous Subsidy Hike

Last year, in October, the government had increased the subsidy from Rs 200 to Rs 300 per 14.2-kg cylinder for up to 12 refills annually. This enhanced subsidy was applicable for the current fiscal year ending on March 31.

CCEA Decision

The Cabinet Committee on Economic Affairs (CCEA) has approved the extension of this subsidy until 2024-25. Union Minister Piyush Goyal shared this information with reporters.

Beneficiaries And Cost

Nearly 10 crore families are expected to benefit from this move, which will cost the government Rs 12,000 crore.

Objective Of Ujjwala Yojana

The Ujjwala Yojana, launched in May 2016, aims to provide deposit-free LPG connections to adult women from poor households, making clean cooking fuel accessible to rural and deprived communities.

Previous Subsidy Increases

Earlier, in May 2022, the government had provided a Rs 200 per cylinder subsidy to PMUY beneficiaries, which was later raised to Rs 300 in October 2023.

Recent Price Reduction

In late August, just before the assembly elections in states like Madhya Pradesh and Rajasthan, the government reduced cooking gas prices by Rs 200 per cylinder. This brought down the price of an LPG cylinder to Rs 903.

Impact On Beneficiaries

The subsidized price of Rs 603 per cylinder, after considering the Rs 300 subsidy, aims to make LPG more affordable for Ujjwala beneficiaries.

Encouraging LPG Usage

The targeted subsidy scheme encourages PMUY consumers to continue using LPG for cooking purposes. As a result, there has been a 20% increase in the average LPG consumption among PMUY beneficiaries.

Eligibility

All PMUY beneficiaries are eligible to avail of the targeted subsidy scheme, ensuring equitable access to clean cooking fuel for those in need.