Government hikes LPG Subsidy, while many struggle for refills
Promotion scheme for Composite cylinder launched by INDANE in Bangalore
By Kumar Vikram
New Delhi, October 5: The Union Cabinet on Wednesday announced an increase in the subsidy amount for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) from Rs 200 to Rs 300 per LPG cylinder. While this move is aimed at making LPG cylinders more affordable for PMUY beneficiaries, it highlights a stark reality that a significant number of people in India are apparently unable to bear the cost of LPG refills.
Government data reveals a concerning trend. As of July 1, 2023, there are a total of 31.50 crore active domestic LPG consumers in the country, including 9.59 crore PMUY beneficiaries. However, statistics from the year 2020-21 show that 66,81,062 beneficiaries managed to secure only one refill, while 1,24,21,626 beneficiaries were able to afford only two refills during that year.
What’s even more alarming is that the number of beneficiaries opting for just one refill saw a significant increase in the subsequent year, 2021-22, with a staggering 1,61,50,120 beneficiaries obtaining only one refill. Meanwhile, 1,48,74,369 beneficiaries managed to afford only two refills in that year. These numbers reveal a harsh reality: a large section of the population, despite government initiatives, struggles to access clean cooking fuel on a regular basis.
The Pradhan Mantri Ujjwala Yojana (PMUY) was launched in May 2016 with the noble goal of providing clean cooking fuel to impoverished households nationwide. Under this scheme, deposit-free LPG connections are offered to adult women from disadvantaged households. While PMUY Phase-I successfully achieved its target of releasing 8 crore connections by September 2019, PMUY Phase-2 (Ujjwala 2.0) was launched in August 2021 to cover the remaining underserved households. This phase aimed to release 1 crore additional PMUY connections, which was achieved in January 2022.
Despite these remarkable milestones, the issue of affordability still looms large. LPG consumption by PMUY beneficiaries is closely monitored, but several factors, including household size, cooking habits, and price, influence consumption patterns. It’s worth noting that per capita consumption of PMUY beneficiaries has risen from 3.01 (FY 2019-20) to 3.71 (FY 2022-23) in terms of the number of 14.2 kg LPG cylinders taken per year. While this indicates an increase in consumption, it also underscores the need for ongoing support.
To address the issue of affordability, the government has taken several steps, including offering a targeted subsidy of Rs. 200 per 14.2 kg refill for PMUY beneficiaries for the years 2022-23 and 2023-24. Other measures include the option of a 5 Kg Double Bottle Connection (DBC), a swap option from 14.2 kg to 5 Kg, and providing up to 3 free refills to PMUY beneficiaries under the Pradhan Mantri Garib Kalyan Package from April 2020 to December 2020.
While these efforts are commendable, the fact remains that a large section of the population, particularly those living in poverty, still grapples with the high cost of LPG refills.
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