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EconomyThe Hindu9 June 2026

Govt cuts subsidised LPG cylinders under Ujjwala from 9 to 4

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๐Ÿ“Œ Summary:

  • The Centre has reduced subsidised refills under the Pradhan Mantri Ujjwala Yojana (PMUY) from nine to four cylinders a year
  • The cut comes amid pressure on global LPG supplies in the backdrop of the West Asia (Israel-Iran) conflict
  • The curtailment was communicated on June 7, 2026 in a press statement accompanying a domestic LPG price hike
  • Move aims to contain the rising subsidy/under-recovery burden on oil marketing companies as import-linked LPG costs climb

๐ŸŽฏ UPSC Relevance: GS2 (welfare schemes, targeting of subsidies) and GS3 (energy security, fiscal management) โ€“ balancing fiscal prudence with clean-cooking-fuel access for the poor.

๐Ÿ“ Prelims Facts:

  • PMUY launched in May 2016 to provide deposit-free LPG connections to women of poor households
  • Implemented by the Ministry of Petroleum and Natural Gas
  • Subsidised refills under PMUY cut from 9 to 4 per year (2026)

๐Ÿ”‘ Key Term: Under-recovery โ€“ the gap between the cost of producing/importing a fuel and its regulated/subsidised selling price, borne by oil marketing companies.

PMUYLPG subsidyUjjwalaenergy security

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