Budget 2023: Will Government Extend LPG Subsidy? Here’s What Report Says

While there have been constant doubts regarding whether the PM Ujjwala Scheme will be extended or not, it has been reported that the Rs 200 per cooking gas cylinder subsidy under the scheme for 12 cylinders per year might be extended for another year. It will be done in order to attain 100% cooking gas coverage.

This has been done in order to reach 100 percent LPG coverage which several states are lacking currently. In May 2021, the Centre approved a Rs 200 subsidy for 12 cylinders per year to 90 million Ujjwala Scheme beneficiaries for the financial year 2023.

In addition, the Centre is allegedly going to extend the scheme that offers a free LPG cylinder, Rs 1,600, a free first refill, and a free gas stove to women in low-income households.

As this year will witness the last budget from the Modi government, Ujjwala beneficiaries are concerned that if the scheme will be renewed for the financial year 2024 or not.

Reportedly, another reason why the center might extend the Pradhan Mantri Ujjwala Yojana is to improve the penetration in northeast India. Meghalaya has the lowest LPG coverage in India, at 54.9 percent, followed by Tripura, Jharkhand, and Gujarat.

Prior to the 2024 elections, the Modi government is expected to make changes in favor of the LPG subsidy so beneficiaries can expect the continuation of the scheme.

The decision also comes at a time when inflation is high and the general elections in 2024 are fast approaching. Cooking gas, petrol, and diesel have long been hotly debated election topics.

Warrior Moms, a group of moms from across India fighting for their children's right to clean air, recently urged Union Finance Minister Nirmala Sitharaman to include provisions in the Union Budget 2023-24 to make liquefied petroleum gas (LPG) accessible to low-income households.

The letter stated that millions of households were unable to transition to LPG due to a lack of subsidy under the Pradhan Mantri Ujjwala Yojna (PMUY) and difficulties in acquiring timely cylinder refills.