LPG Subsidy Scheme 2025: ₹300 Per Cylinder for PMUY, Big Relief for Middle Class Families

LPG Subsidy Scheme 2025: In a big relief package for Indian families that count in the millions, the Modi government has approved a ₹30,000 crore LPG subsidy package to protect middle-class families from the brunt of spasmodic global LPG prices triggered by geopolitical tensions. The decision, cleared by the Union Cabinet led by Prime Minister Narendra Modi, will also aid in bolstering state-run oil marketing companies (OMCs) like Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL).

LPG Subsidy Scheme 2025

The LPG Subsidy Scheme 2025 by the Modi government provides huge relief to Indian families. The Union Cabinet approved a ₹30,000 crore package to protect middle-class families from the increasing LPG price and provide support to state-owned Oil Marketing Companies (IOC, BPCL, HPCL). Under the Pradhan Mantri Ujjwala Yojana (PMUY), almost 10 crore below-poverty-line families will be provided with a ₹300 per 14.2 kg cylinder subsidy on 9 refills a year, with proportionate advantage for 5 kg cylinders. This step would result in affordable cooking gas, encourage LPG consumption, and ensure supply stability in spite of ups and downs in international energy prices as well as geopolitical tensions.

₹300 Billion Compensation Package for Oil Marketing Companies

The government will provide the ₹300 billion (USD 3.4 billion) package in 12 instalments to compensate for losses incurred in selling subsidised LPG cylinders. The financial support will enable OMCs to sustain crude purchasing, service debt, and carry on with capital expenditure programmes in spite of turbulent energy markets.
Ashwini Vaishnaw, Railway, Information & Broadcasting, Electronics & IT Minister, said that the action would protect middle-class families from the impact of increasing LPG prices due to international oil market volatility.

Pradhan Mantri Ujjwala Yojana (PMUY) – Subsidy Boost

Alongside the middle-class relief, the government has allocated ₹12,060 crore under the Pradhan Mantri Ujjwala Yojana (PMUY) for FY 2025–26. The scheme will:

• Provide a ₹300 per 14.2 kg LPG cylinder subsidy (up to 9 refills per year).

• Offer proportionate subsidies for 5 kg cylinders.

• Benefit nearly 10 crore poor households headed by women.

PMUY at a Glance:

• Launched: May 2016.

• Objective: Provide deposit-free LPG connections to women from low-income households.

• Components: Free connection, security deposit, regulator, hose, gas card, installation, free stove & first refill under Ujjwala 2.0.

Impact on LPG Usage:

• 2019–20: 3 refills/year.

• 2022–23: 3.68 refills/year.

• 2024–25: 4.47 refills/year.

Geopolitical Context – India–US Trade Tensions

The news arrives against the backdrop of India–US trade tensions and bilateral Free Trade Agreement (FTA) talks. US President Donald Trump recently imposed a 50% duty on Indian imports, with an additional 25% tied to India’s ongoing purchase of Russian oil. Prime Minister Modi, while speaking at the M.S. Swaminathan Centenary International Conference, stated:
             “Bharat will never compromise on the interest of its farmers, dairy farmers, and fishermen, even if I have to take a heavy personal cost.”
The United States is allegedly asking for greater access to Indian agriculture and dairy markets as well as the right to export soybeans, corn, almonds, and apples. The Samyukt Kisan Morcha has asked that FTA details be placed in Parliament before signing any agreement.

Why This Move Matters

• For Consumers: Protects both urban middle-class families and rural poor households from LPG price hikes.

• For Economy: Supports OMCs, ensuring uninterrupted fuel supply and infrastructure investment.

• For Politics: Positions the Modi government as pro-welfare ahead of major political and trade negotiations.

Final Word

The ₹30,000 crore LPG subsidy is an economic and political declaration — a cushion for families fighting price uncertainty and a calculated step during India’s contentious trade negotiations with the US. With the middle class and PMUY recipients included, the Modi government wants cooking gas to remain affordable and available while charting the complexities of international energy markets.

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