Cabinet clears ₹42K-crore for LPG subsidies

The scheme will provide targeted subsidy of ₹300 per 14.2 kg cylinder for up to nine refills per year.

- Rajeev Jayaswal

The Union cabinet on Friday approved ₹42,060 crore under two separate heads for supplying cheaper cooking gas to about 330 million Indian households, including 103.3 million poor families in the current financial year.

The cabinet, chaired by Prime Minister Narendra Modi approved ₹30,000 crore budgetary support to state-run oil marketing companies for providing subsidised cooking gas to the middle-class households (in the past) and ₹12,060 crore to continue supporting the beneficiaries of the Pradhan Mantri Ujjwala Yojana in FY26, information and broadcasting minister Ashwini Vaishnaw said.

“PM Ujiwala yojana is globally recognized as one of the biggest examples of inclusive growth,” he said, adding that the scheme involved a total expenditure of ₹52,000 crore till 2024-25 since it was launched by the Prime Minister in 2016.

As approved on Friday, the scheme will provide targeted subsidy of ₹300 per 14.2 kg cylinder for up to nine refills per year to beneficiaries in 2025-26. PMUY consumers would have the option to buy smaller cylinders of 5kg, with proportionately prorated subsidy.