India cuts Ujjwala LPG cylinder quota to four per year

The Indian government has reduced the annual quota of subsidized cooking gas cylinders for beneficiaries of the Pradhan Mantri Ujjwala Yojana from nine to four, effective Monday, June 8. Officials stated the adjustment aligns fiscal support with observed household consumption patterns.

The flagship scheme, launched in May 2016 to provide clean cooking fuel to underprivileged households, originally entitled beneficiaries to 12 subsidized 14.2-kilogram cylinders per year. The quota was first reduced to nine cylinders last year. Praveen Mal Khanooja, Additional Secretary in the Ministry of Petroleum and Natural Gas, explained at a media briefing that the revised entitlement of four cylinders broadly reflects the average annual consumption among Ujjwala households.

The policy change coincides with significant increases in domestic LPG prices. Following a price hike of 29 rupees per cylinder on June 7, the retail price of a 14.2-kilogram cylinder in Delhi stands at 942 rupees. This marks a cumulative increase of 89 rupees over the past three months. After accounting for the direct benefit transfer subsidy of 300 rupees, Ujjwala beneficiaries now effectively pay 642 rupees for each of...