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Cabinet backs Rs 30,000 crore for OMC LPG losses, extends PMUY subsidy

13 August 20251 min read
GOVERNMENT SCHEMESCabinet backs Rs30,000 crore for OMCLPG losses, extendsPMUY subsidy13 August 2025safalsetu.com

Why in the news

The Union Cabinet approved budgetary support of Rs 30,000 crore for public sector Oil Marketing Companies (OMCs) to cover losses from selling LPG cylinders below international prices in FY 2024-25. It also continued the targeted PMUY subsidy for FY 2025-26.

Key facts

  • OMC compensation: Rs 30,000 crore for FY 2024-25.
  • PMUY subsidy: Rs 300 per 14.2-kg cylinder, for up to 9 refills a year in FY 2025-26.
  • Route: the Pratyaksh Hastantarit Labh (PAHAL) DBT scheme.
  • Coverage: over 10.33 crore PMUY connections as of July 2025.
  • Usage: per capita LPG use among beneficiaries rose about 49% between 2019 and 2024.

At a glance

ItemDetail
OMC supportRs 30,000 crore, FY 2024-25
SubsidyRs 300 per 14.2-kg cylinder
Refills coveredUp to 9 a year, FY 2025-26

About PMUY

Pradhan Mantri Ujjwala Yojana was launched in 2016 by the Ministry of Petroleum and Natural Gas. It targets women aged 18 and above from poor households without an LPG connection. Cleaner cooking cuts indoor air pollution, domestic labour and deforestation.

Exam angle

  • Learn the numbers: Rs 30,000 crore, Rs 300, 9 refills, 10.33 crore.
  • PMUY: 2016, Petroleum Ministry.
  • Subsidy goes via DBT (PAHAL).

Test yourself

1. What is the targeted LPG subsidy per 14.2-kg cylinder under PMUY continued for FY 2025-26?

The subsidy is Rs 300 per cylinder for up to 9 refills a year.

2. In which year was Pradhan Mantri Ujjwala Yojana launched?

PMUY began in 2016 under the Ministry of Petroleum and Natural Gas.

3. How much budgetary support did the Cabinet approve for OMCs' LPG losses in FY 2024-25?

Rs 30,000 crore was approved for OMCs.

Sources: Drishti IAS - OMC compensation and PMUY subsidy extension, Drishti IAS news analysis, 13 Aug 2025