Government has reduced the number of cylinders for which a Pradhan Mantri Ujjwala Yojana (PMUY) household can avail subsidy from nine to four. The subsidy amount remains unchanged at ₹300 per 14.2 kg domestic LPG cylinder.The decision comes amid the disruption in Strait of Hormuz, which have pushed up benchmark Saudi CP prices, resulting in the domestic cylinder cost rising past ₹1,600 and losses of PSU oil marketing companies (OMCs) hitting ₹700 a cylinder.Praveen Mal Khanooja, Additional Secretary in the Ministry of Petroleum and Natural Gas (MoPNG), said on Monday that PMUY households will receive ₹300 a cylinder on the first four refills each year -- ₹1,200 per beneficiary a yearTo ensure sustained usage of LPG by low income households, the government provided a targeted subsidy of ₹200 per 14.2 kg domestic LPG cylinder for up to 12 refills per annum, and proportionately pro-rated for 5 kg connections, to the PMUY beneficiaries in May 2022. In October 2023, subsidy was increased to Rs 300 a cylinder for up to 12 refills annually. It was revised down to up to 9 refills per year in August 2025 at Rs 300 per cylinder.Asked about the subsidy cut for PMUY beneficiaries, Khanooja said, “Whether I’m a Ujjwala customer or a non-Ujjwala customer, I’m getting a cylinder which should have cost ₹1,600. At ₹942, even if I’m a non-Ujjwala customer. Now in that case, that is also an indirect subsidy to customers. Now over and above that, Ujjwala customers get ₹300 more. So overall, if you see, they are getting ₹1,000. The non-Ujjwala consumers are also getting ₹700 a cylinder.”He added that OMC under-recovery is currently about ₹700 per 14.2 kg cylinder, similar to levels seen earlier, when the government compensated OMCs with ₹52,000 crore across FY23 and FY24.Currently, a 14.2 kg LPG cylinder costs ₹942 for the general consumer and ₹642 for the Ujjwala household in Delhi. Government’s subsidy burden is likely to rise to around ₹60,000 crore on LPG in FY26, up from ₹41,338 crore a year before. India has more than 33.50 crore LPG consuming households, of which over 10.50 crore are PMUY beneficiaries.Published on June 8, 2026