Major Change in Ujjwala Scheme: How Many Subsidized Cylinders Will Be Given Every Year; Crores of Families to Be Affected
A New Challenge for the Budgets of Poor Families
The Pradhan Mantri Ujjwala Yojana has played a pivotal role in providing clean fuel to crores of poor families across the country, saving them from the hazards of smoke. However, a recent change to the scheme has raised concerns among beneficiaries. The government has reduced the annual quota of subsidized LPG cylinders provided under the Ujjwala scheme from nine to four. This will directly impact families that rely entirely on LPG for their cooking needs.
Major Change in Ujjwala Scheme
Subsidy Now Limited to Four Cylinders
Crores of Families to Be Affected
Rising Energy Costs Cited as the Reason
Increased Pressure on Kitchen Budgets
Under the PMUY scheme, the government provides a targeted subsidy of Rs 300 per cylinder for up to nine refills in a year, which has now been reduced to four.
Under the new system, consumers will have to purchase gas at market rates once the limit of four cylinders is exhausted.
What about Those Who Have Already Purchased Multiple Cylinders?
A major question arises for consumers who purchased multiple cylinders during the early months of the year. However, the government has clarified that the subsidy calculation will be based on the financial year. In India, the financial year runs from April to March. This means that cylinders purchased in January, February, and March will not count towards the new limit.
If a beneficiary has availed of two subsidized cylinders in April and May, they will be eligible for two more subsidized cylinders until March 2027. Once the limit of four cylinders is reached, the full price must be paid for any subsequent cylinders.
Over 10 crore families to be affected
According to the Central Government, the number of beneficiaries under the Pradhan Mantri Ujjwala Yojana exceeds 10 crore. It is considered one of the world's largest clean fuel schemes. Women from rural areas and economically weaker sections have benefited the most from it. With the implementation of the new system, the annual kitchen budget of crores of families is likely to increase.
Why did the government take this decision?
The government argues that changes to the subsidy system became necessary due to the continuous rise in energy prices in the international market and the mounting financial pressure on oil marketing companies. Fluctuations in global crude oil and LPG prices have impacted the Indian market as well. Reports indicate that LPG supply costs have risen, and oil companies are incurring losses on every cylinder sold. Consequently, the government has taken steps to reduce the financial burden by limiting the scope of the subsidy.
Future of the Ujjwala Yojana and consumer expectations
The Ujjwala Yojana is counted among the country's major social transformation schemes. It has played a significant role in improving women's health, environmental conservation, and the standard of living in rural areas. Therefore, any change to the scheme directly impacts crores of families.
Experts believe the government needs to strike a balance between fiscal stability and the needs of poor families. If international energy prices stabilize, new decisions regarding relief measures could be taken in the future. For now, beneficiaries will need to better plan their gas consumption to derive the maximum benefit from the available subsidy.