New Delhi, June 8 -- The Centre has reduced the number of subsidised LPG cylinders available annually under the Pradhan Mantri Ujjwala Yojana (PMUY) from nine to four, saying the revised limit is in line with the average consumption of beneficiary households.

Addressing a press briefing on Monday, Petroleum and Natural Gas Ministry Additional Secretary Praveen Mal Khanooja said the new entitlement broadly reflects the average annual usage among PMUY consumers. The scheme, launched in May 2016, provides deposit-free LPG connections to adult women from poor households. Beneficiaries were originally eligible for 12 subsidised 14.2-kg cylinders each year. The quota was reduced to nine cylinders last year and has now been cut to four.

The government introduced a direct benefit transfer subsidy of Rs 200 per 14.2-kg cylinder in May 2022 to make cooking gas more affordable. The subsidy, available for up to 12 refills a year, was increased to Rs 300 per cylinder in October 2023. A proportionate benefit is also provided for 5-kg cylinders.

The decision comes amid rising LPG prices. Cooking gas prices were increased by Rs 29 per cylinder on June 7, taking the retail price of a 14.2-kg cylinder in Delhi to Rs 942 after cumulative hikes of Rs 89 over the past three months. After the Rs 300 subsidy, PMUY beneficiaries pay Rs 642 per cylinder.

Khanooja said beneficiaries effectively receive support of about Rs 1,000 per cylinder when compared with the government's estimated supply cost of around Rs 1,600. He noted that the cost of supplying domestic LPG has risen sharply following higher international prices linked to tensions and conflict in West Asia. India's LPG import costs are tied to the Saudi Contract Price benchmark, which has risen about 46 per cent since February due to supply disruptions linked to the Strait of Hormuz.

According to the official, the government has provided Rs 52,000 crore in LPG subsidies since 2022. Despite recent price revisions, oil marketing companies continue to incur losses of around Rs 700 on every 14.2-kg LPG cylinder sold. He also said companies are facing under-recoveries of about Rs 6 per litre on petrol and Rs 30 per litre on diesel, with cumulative losses estimated at Rs 600-700 crore. Petrol and diesel prices were raised by about Rs 7.50 per litre in four instalments last month, while CNG prices have increased by Rs 6 per kg.

Published by HT Digital Content Services with permission from Millennium Post.