On Friday, the Union Cabinet provided a big 30,000 crores LPG subsidy program to the state-owned oil marketing companies (OMCs), including the Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation, to make sure that the LPG prices can be affordable to the middle class. Presenting the decision, Union Information and Broadcasting Minister Ashwini Vaishnaw added that the move will protect the households against the effects of continuing global energy market volatility.
The petroleum ministry, under the plan, will issue the subsidy in 12 equal monthly instalments, with an allocation ratio between the three OMCs being decided by the Ministry of Petroleum and Natural Gas. The support will assist these firms to take care of the major costs, such as the cost of purchasing crude oil and LPG, payment of debtors, making major investments, and ensuring that these companies supply an unbroken and stable supply of LPG cylinders to households.
The prices of LPG in the global market have continued to surge till 2024-25, making OMCs bear big losses in order to maintain the price of LPG at affordable levels in the domestic market. This subsidy is meant to absorb such losses and maintain stable prices in the economy for the consumer, in the face of market price fluctuations in the international market.
Along with subsidy to OMCs, the Cabinet also sanctioned 12060 crore of financial assistance to PMUY beneficiaries as part of the budgeted annual amount in the fiscal year 2025-26. This will entitle the benefit of a 300 subsidy on each LPG cylinder to the eligible households, benefiting nearly 10.33 crore families (including close to 45 crore citizens of India).
Issued in 2016, PMUY implemented a safety net program intended to offer zero-cost LPG connections to adult women belonging to poor families. Approximately 10.33 crore active connections were found in PMUY as of July 1, 2025. The 2024-25 fiscal year alone witnessed a total spend of 52,000 crores under the scheme, which highlights the efforts ongoing by the government to ensure that clean cooking fuel becomes accessible and affordable to all parts of the population, being mindful of the financial position of the government-owned OMCs as well.
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