The Union government has reduced the number of subsidised liquefied petroleum gas (LPG) refills available under the Pradhan Mantri Ujjwala Yojana (PMUY) from nine cylinders a year to four, citing mounting pressure on supplies and rising subsidy costs amid elevated global energy prices linked to the ongoing conflict in West Asia.
The move, which significantly lowers the annual subsidy entitlement available to PMUY beneficiaries, was announced alongside a fresh increase in domestic LPG prices on Sunday.
The decision comes as oil marketing companies face increasing losses on domestic LPG sales due to a sharp rise in international benchmark prices. Officials said the cost of supplying a domestic LPG cylinder has crossed ₹1,600, while consumers continue to pay substantially lower prices because of government support.
The latest revision means PMUY beneficiaries will continue to receive a subsidy of ₹300/14.2kg cylinder, but only on the first four refills in a year. Earlier, the subsidy was available for up to nine refills annually.
As a result, the maximum annual subsidy support available under the scheme has effectively been reduced from ₹2,700 to ₹1,200/household.
The announcement coincides with the second increase in domestic LPG prices since tensions escalated in West Asia.
With effect from 7 June 2026, the price of a 14.2kg domestic LPG cylinder in Delhi was increased by ₹29, taking the retail price to ₹942 from ₹913. Across the two recent revisions, domestic LPG prices have risen by a cumulative ₹89 per cylinder.
Despite the increase, PMUY beneficiaries in Delhi currently pay ₹642 per cylinder after accounting for the ₹300 subsidy, while non-PMUY consumers pay ₹942.
Officials argued that both categories of consumers continue to receive substantial support when compared with prevailing international LPG prices.
Responding to concerns over the reduction in subsidised refills, Praveen Khanooja, additional secretary in the ministry of petroleum and natural gas (MoPNG), said consumers were already being shielded from the full impact of global LPG prices.
“Whether I am a PMUY or a non-PMUY consumer, I am getting a cylinder, which should have cost ₹1,600 [adhering to international pricing dynamics], at ₹942, which is also an indirect subsidy,” he said.
“Over and above that, PMUY consumers get ₹300 more; therefore, they are getting about ₹1,000 subsidy on every cylinder,” Mr Khanooja added.
He also noted that the average annual LPG consumption among PMUY beneficiaries is around four to five cylinders, broadly in line with the revised subsidy entitlement.
According to the government, a PMUY beneficiary purchasing a cylinder at ₹642 is receiving a discount of around 60% compared with current international LPG prices. For non-PMUY consumers paying ₹942, the discount works out to about 45%.
Officials attributed the growing financial burden on oil marketing companies to a sharp increase in global LPG prices.
The ministry said the Saudi contract price (CP), a key benchmark used for LPG imports into India, has risen by about 46% since February, significantly increasing procurement costs.
As a result, State-owned oil marketing companies are currently incurring losses of around ₹700 on every domestic LPG cylinder sold, according to government estimates.
The reduction in subsidised refills is, therefore, being viewed as part of a broader effort to contain subsidy expenditure while maintaining support for economically vulnerable households.
Launched in 2016, the Pradhan Mantri Ujjwala Yojana aims to provide clean cooking fuel to poor households by replacing traditional fuels such as firewood and coal.
The scheme has expanded substantially over the past decade, with around 105.5mn (million) LPG connections provided under PMUY as of 26 May 2026.
However, the reduction in subsidised refills is likely to affect households that consume more than four cylinders annually, particularly larger families and those that have increasingly shifted towards LPG as their primary cooking fuel.
The government has maintained that the revised entitlement reflects actual consumption patterns among most PMUY users while helping manage the growing subsidy burden arising from volatile international energy markets.
The decision comes at a time when global energy markets remain under pressure due to geopolitical tensions in West Asia, raising concerns about further increases in import costs and their impact on domestic fuel pricing.
