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PMUY and LPG Cylinder Prices: A Closer Look



  Sep 09, 2023

Pradhan Mantri Ujjwala Yojana (PMUY) and LPG Cylinder Prices


1. What is the Pradhan Mantri Ujjwala Yojana (PMUY)?

PMUY is a scheme aimed at providing LPG gas cylinders to rural and deprived households.
 

2. How many PMUY beneficiaries did not take cylinders or took only one refill in 2022-2023?

One out of every four beneficiaries did not take any cylinders or took just one refill.
 

3. Why are many beneficiaries not refilling their cylinders?

The spike in LPG cylinder prices made them expensive. Rates have nearly doubled since 2018, reaching ₹903 a cylinder in March 2023, even after a subsidy of ₹200 per cylinder.
 

4. How many households bought no refill cylinders at all last year?

Over 1.18 crore households (one in nine PMUY beneficiaries) bought no refill cylinders.
 

5. How has the LPG cylinder rate changed over the years?

From January 2018 to March 2023, there was an 82% spike in the rate of subsidized LPG cylinders. A cylinder that cost ₹495.64 in January 2018 cost ₹903 by March 2023.
 

6. How much does a non-subsidized LPG cylinder cost?

A non-subsidized LPG cylinder cost ₹741 in January 2018. By March 2023, the price increased by 49% to ₹1,103.
 

7. How often do PMUY beneficiaries refill their LPG cylinders?

The average PMUY beneficiary refilled less than four LPG cylinders during 2022-23. This is in contrast to non-PMUY consumers, who refilled about 6.67 cylinders on average.
 

8. Who decides on the subsidy for LPG cylinders?

The subsidy is not decided by the Oil Marketing Companies. It is based on the difference between the Retail Selling Price linked to the international price of LPG and the subsidized cost to the customer, as decided by the government.
 

9. Why are subsidies important for PMUY beneficiaries?

Due to the spike in LPG prices, without subsidies, the hike in price would be directly borne by the consumer, making it unaffordable for many PMUY beneficiaries.
 
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