OMCs to get ₹30K-cr to cover losses

₹300 Ujjwala subsidy extended to FY26, to cost ₹12,000 crore

- Arunima Bharadwaj

The Union Cabinet on Friday approved ₹30,000 crore budgetary support to state-run oil marketing companies to cover their under-recoveries on the sale of liquified petroleum gas (LPG).

In addition, the Cabinet also approved the targeted subsidy of ₹300 per 14.2 kg cylinder for up to 9 refills per year to the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY) during FY26 at an expenditure of ₹12,000 crore.

The scheme launched in May 2016 aims to provide a deposit-free LPG connection to adult women from poor households across the country. As on July 1, there are about 103.3 million PMUY connections across the country.

As per the existing modalities of Ujjwala 2.0, the first refill and stove are also provided free of cost to all beneficiaries. PMUY beneficiaries are not required to make any payments for the LPG connection or the first refill or stove as the cost for these is borne by the government or OMCs.