Big blow to the beneficiaries of Ujjwala scheme! Government suddenly reduced the number of subsidized cylinders, now only so many cylinders will be available in a year

By Samira Vishwas On Jun 9, 2026

New Delhi: A very disappointing news is coming for the beneficiaries of ‘Pradhan Mantri Ujjwala Yojana’ (PMUY), one of the most popular schemes of the Central Government. Taking a big decision, the government has now reduced the annual number of subsidized gas cylinders with a huge cut. According to the new rules, now only 4 subsidized LPG cylinders will be given to the families covered under the Ujjwala scheme in a year. Let us tell you that the government has directly reduced this quota from 9 cylinders to only 4.

Know how the subsidy quota gradually decreased

Pradhan Mantri Ujjwala Yojana was launched in May 2016 with the aim of providing clean fuel and LPG connections to adult women from poor families without any deposit. In the initial days, the beneficiaries of this scheme were given 12 subsidized cylinders (14.2 kg) in a year. But with time the rules changed and last year itself this quota was reduced to 9 cylinders. Now the government has once again reduced it to only four cylinders in a year.

During the press conference, Additional Secretary, Ministry of Petroleum and Natural Gas, Praveen Mal Khanuja said that this new change has been made keeping in mind the average annual consumption of the beneficiaries of the Ujjwala scheme. To provide relief to the general public, the government had started a targeted subsidy of Rs 200 in May 2022, which was increased to Rs 300 per cylinder in October 2023. This money is transferred directly to the bank account of the beneficiaries.

First the prices increased and now the number of cylinders reduced

This decision of the government has come at a time when LPG prices have recently seen an increase. In the country’s capital Delhi, the price of domestic LPG has increased by a total of Rs 89 twice within the last three months. After the last increase on June 7, the retail price of a 14.2 kg cylinder in Delhi has reached Rs 942. However, after getting the government subsidy of Rs 300, this cylinder costs Rs 642 for the beneficiaries of Ujjwala scheme.

Officials say that if we look at the estimated supply cost of the government, the beneficiaries are actually getting indirect assistance of up to Rs 1,000 per cylinder. Regarding the increase of Rs 29 that took place on June 7, the officials argue that it is equivalent to only Re 1 per day and only 20 paise per day for a family of five. He also claimed that despite the crisis in West Asia, India is getting the cheapest cooking gas in the world.

Huge jump in the cost of LPG in the international market

According to the ministry, after the war broke out in West Asia (Middle East) in late February, there has been a huge jump in the prices of gas in the international market. Due to this, the supply cost of domestic LPG cylinder in India has increased to more than Rs 1,600. In fact, the import cost of LPG in India is directly determined by the ‘Saudi Contract Price’ (CP), which is the global benchmark. Due to the blockage in the Strait of Hormuz, the supply from Gulf countries has reduced significantly, due to which the global benchmark has increased by about 46% since February.

Oil companies are facing huge losses

Praveen Mal Khanuja informed that the government has given huge subsidy of about Rs 52,000 crore from the year 2022 till now. Despite these increased prices, oil companies are incurring a loss of about Rs 700 on every 14.2 kg cylinder. The loss is not limited to gas only, but companies are also facing under-recovery due to selling petrol and diesel at prices below cost. This loss on petrol is around Rs 6 per liter and on diesel it is around Rs 30 per liter.

Overall, currently oil companies are facing a huge loss of Rs 600 to 700 crore. This is the reason why the prices of petrol and diesel have been increased by about Rs 7.50 per liter in four separate installments last month, while the prices of CNG have also increased by Rs 6 per kg.