Why in NEWS
The Union Cabinet approved budgetary support to public sector Oil Marketing Companies (OMCs) to cover their losses from selling LPG cylinders below international prices in FY 2024-25. It also continued the targeted LPG subsidy of Rs 300 per 14.2-kg cylinder under the Pradhan Mantri Ujjwala Yojana (PMUY) for up to 9 refills per year for FY 2025-26.
Key Concepts & Terms
| Term | Definition | Example / Note |
|---|---|---|
| OMCs | Public sector Oil Marketing Companies involved in refining, distribution, and sale of petroleum products | IOCL, BPCL, HPCL |
| PAHAL (DBT) | Direct Benefit Transfer scheme for LPG subsidy | Subsidy credited directly to beneficiaries’ bank accounts |
| PMUY | Scheme providing LPG connections to poor households to replace traditional fuels | Launched in 2016 |
| Ujjwala 2.0 | Phase 2 of PMUY with simplified procedures for migrant families | Self-declaration for LPG connection |
| LPG Subsidy | Financial support to reduce the cost of LPG cylinders for beneficiaries | Rs 300 subsidy for 14.2-kg cylinder |
Pradhan Mantri Ujjwala Yojana (PMUY)
| Aspect | Details |
|---|---|
| Launched | 2016 by Ministry of Petroleum and Natural Gas |
| Objective | Provide clean cooking fuel to poor and rural households, reducing dependence on firewood and coal |
| Eligibility | Women aged 18+ from poor households without LPG, including SC/ST, PMAY-G, MBC, AAY, tribal groups, forest dwellers, island residents, SECC-listed families |
| Ujjwala 2.0 | Migrant families can obtain LPG using self-declaration without Proof of Address or Ration Card |
| Benefits | Rs 300 subsidy per 14.2-kg cylinder for up to 9 refills annually; improves health, reduces indoor air pollution, cuts drudgery, protects environment |
| Achievements | Over 10.33 crore LPG connections issued as of July 2025; LPG usage up 49% between 2019–2024 |
In a nutshell
PMUY has transformed cooking energy access for poor households, empowering women and improving health outcomes. With subsidies extended and OMCs supported, the scheme continues to balance affordability, social welfare, and energy security.
Prelims Questions
- The PAHAL scheme is related to:
a) Fertilizer subsidy
b) Direct LPG subsidy transfer
c) Rural housing subsidy
d) Agricultural MSP payments - Which of the following provisions was introduced under Ujjwala 2.0?
a) Free LPG stove distribution
b) Migrant families can apply using self-declaration without address proof
c) Universal LPG subsidy for all citizens
d) Replacement of all traditional fuels with LPG by 2025 - As of July 2025, approximately how many LPG connections have been issued under PMUY?
a) 5 crore
b) 7.5 crore
c) 10.33 crore
d) 15 crore
Prelims Answers & Explanations
| Q.No | Answer | Explanation |
|---|---|---|
| 1 | b) Direct LPG subsidy transfer | PAHAL ensures LPG subsidy is directly transferred to beneficiaries’ bank accounts. |
| 2 | b) Migrant families can apply using self-declaration without address proof | This was a key feature of Ujjwala 2.0. |
| 3 | c) 10.33 crore | Over 10.33 crore connections have been issued under PMUY by July 2025. |
