India
-Gaurav Sharma
The government has lowered the subsidised LPG cylinder count. Poor households under the Ujjwala scheme now get four units. This is a drop from the previous nine cylinders. A top petroleum ministry official confirmed this on Monday.
These 105 million households receive a ₹300 subsidy per refill. This support applies to the first four refills every year. The change follows a price hike of ₹29 for cylinders. The price rise was officially announced in a statement on Sunday.
The government confirmed a reduction from 9 to 4 subsidized LPG cylinders annually for 105 million Ujjwala scheme households, applying the ₹300 subsidy only to the first four refills due to rising oil firm losses.
Petroleum ministry official Praveen M Khanooja explained the decision. He pointed to high losses for state-run oil firms. These firms lose ₹700 on every 14.2 kg LPG refill. Energy markets remain unstable due to conflict in West Asia.
India has roughly 333.7 million LPG customers in total. All customers pay rates well below actual market prices. Experts say the government is controlling a rising subsidy bill. This comes despite two recent rounds of fuel price hikes.
Policy background and consumption
The Union Cabinet had approved nine subsidised cylinders in August 2025. The new rule now limits this support to four refills. Officials noted that many Ujjwala users consume fewer cylinders. Average usage was about 4.47 refills during 2024-25.
Under-recovery on domestic LPG reached ₹60,000 crore in 2025-26. This rose from the previous year’s total of ₹41,338 crore. The government approved ₹30,000 crore to help oil marketing firms. The ministry stated public firms absorb these cost gaps.
The Pradhan Mantri Ujjwala Yojana began in 2016. It started in Ballia, Uttar Pradesh to aid poor households. It provided free liquid petroleum gas connections to families. Since 2021, new connections often include a free gas stove.
The government previously offered free refills during the Covid-19 pandemic. Targeted subsidies began in May 2022 with a ₹200 cap. This was later raised to ₹300 in October 2023. The scheme continues to ensure affordable fuel for millions of citizens.
