India cuts LPG subsidy refills
Analysis based on 18 articles · First reported Jun 08, 2026 · Last updated Jun 08, 2026
The reduction in LPG subsidies by the India — India>>> is expected to positively impact Petroleum industry by reducing their under-recoveries, potentially improving their financial performance. However, it may lead to increased household expenses for consumers, particularly those in lower-income brackets, which could slightly dampen consumer spending in other sectors.
The India — India>>> has reduced the number of subsidised LPG cylinder refills available under the Pradhan Mantri Ujjwala Yojana (PMUY) from nine to four annually. This decision, announced by Praveen Khanooja>>> of the India — Ministry of Petroleum and Natural Gas>>>, comes amidst rising global Liquefied petroleum gas>>> prices, influenced by the crisis in West Asia>>> and the closure of the Strait of Hormuz>>>. The cost of supplying a domestic LPG cylinder has risen to over INR 1,600, causing Petroleum industry to incur losses of around INR 700 per cylinder. While PMUY beneficiaries will continue to receive a subsidy of INR 300 per 14.2-kg cylinder, this benefit is now capped at the first four refills each year, aligning with the average annual consumption of Ujjwala households. The move aims to balance consumer support with the financial pressures on oil marketing companies, which are also facing under-recoveries on petrol and diesel.
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