Overview
- The Centre has restricted the Rs 300 per-cylinder direct benefit transfer for Pradhan Mantri Ujjwala Yojana beneficiaries to the first four refills each year, cutting the subsidised quota from nine to four for roughly 105 million connections, a change announced on Monday.
- After a Rs 29 price increase on June 7, a 14.2‑kg LPG cylinder in Delhi retails at about Rs 942, and a Ujjwala beneficiary effectively pays about Rs 642 once the capped Rs 300 subsidy is credited.
- Officials cite a roughly 46% rise in the Saudi Contract Price since February and say the cost to supply a cylinder has climbed to over Rs 1,600, leaving state‑run OMCs with under‑recoveries of about Rs 700 per 14.2‑kg cylinder.
- Opposition leaders and critics say the cut will reduce affordability for low‑income households, risk reversing gains in clean‑fuel use and narrow the scheme’s original public‑health objectives.
- The move follows earlier reductions in the PMUY entitlement and is intended to curb the growing fiscal and commercial subsidy burden, and its impact will be watched through upcoming subsidy outlays, OMC compensation requests and household refill patterns.