Overview
The PMUY subsidy has been trimmed. From 9 to 4 cylinders per year, the change comes as the West Asia conflict squeezes global LPG supplies. A price hike of ₹29 was announced on 7 June 2026, taking the total increase to ₹89.
Key Developments
- Number of subsidised refills under PMUY reduced from nine to four cylinders annually.
- Domestic LPG price raised by ₹29 on 7 June 2026, cumulative rise ₹89.
- Targeted subsidy of ₹300 per cylinder remains for up to nine refills.
- Current 14.2‑kg cylinder costs ₹942 in Delhi; PMUY beneficiaries pay ₹642 after subsidy.
- Average consumption of PMUY households is about four to five cylinders a year, matching the revised limit.
Important Facts
As of 26 May 2026, the scheme has provided 10.55 crore LPG connections. The government states that the effective price of ₹642 represents a 60 % discount to the international LPG price, while the non‑PMUY price of ₹942 is a 45 % discount.
Petroleum Ministry officials, including Additional Secretary Praveen Khanooja, highlighted that even non‑PMUY users receive an indirect subsidy because the market price would be around ₹1,600 under global dynamics.
UPSC Relevance
The move illustrates how external geopolitical shocks translate into domestic policy adjustments. Candidates should link the reduction in subsidised refills to fiscal prudence, energy security, and the welfare objective of the PMUY scheme. Understanding the subsidy mechanism helps answer questions on fiscal burden, price controls, and the impact on women‑led households (GS3). The role of the Petroleum Ministry showcases inter‑ministerial coordination in crisis management (GS2).
Way Forward
- Monitor global LPG supply and price trends as the West Asia conflict evolves.
- Consider targeted support for low‑income households if price gaps widen further.
- Promote alternative clean‑energy options such as CNG or electricity to reduce dependence on imported LPG.
- Periodically review the subsidy ceiling to balance fiscal sustainability with social welfare.