Centre Cuts Subsidised LPG for Ujjwala Beneficiaries to 4 Cylinders Yearly
Ujjwala LPG Subsidy Cut to 4 Cylinders Annually

The central government has reduced the subsidised liquefied petroleum gas (LPG) quota for beneficiaries of the Pradhan Mantri Ujjwala Yojana from 12 cylinders to 4 cylinders per year, effective immediately. The decision was announced on Monday by Praveen Mal Khanooja, Additional Secretary in the Ministry of Petroleum and Natural Gas.

Key Details of the Decision

Under the revised policy, each eligible household under the Ujjwala scheme will now receive a maximum of four subsidised LPG cylinders annually. Earlier, beneficiaries were entitled to 12 cylinders at a subsidised rate. The move is part of the government's ongoing efforts to rationalise subsidy expenditure and target benefits more effectively.

Impact on Beneficiaries

The Ujjwala scheme, launched in 2016, aims to provide clean cooking fuel to women from below-poverty-line households. As of the latest data, over 10 crore connections have been distributed under the scheme. The reduction in subsidised quota may increase the financial burden on low-income families, who will now have to purchase additional cylinders at market rates. However, the government has assured that the subsidy will be directly transferred to beneficiaries' bank accounts for the four cylinders.

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Official Statement

Additional Secretary Khanooja stated that the decision was taken after a thorough review of the scheme's implementation and consumption patterns. He emphasised that the move would help in better targeting of subsidies and reduce leakage. The government also plans to promote the use of biogas and other alternatives to LPG in rural areas.

Reactions and Analysis

Opposition parties have criticised the decision, calling it anti-poor and detrimental to the health of rural women. They argue that the reduced quota will force families to revert to traditional biomass cooking, leading to indoor air pollution. On the other hand, experts have welcomed the move as a step towards fiscal prudence, noting that the subsidy burden on the exchequer has been rising.

The government had previously reduced the subsidy on LPG cylinders for general consumers and has now extended the rationalisation to Ujjwala beneficiaries. The decision is expected to save thousands of crores in subsidy expenditure annually.

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