The government has reduced the number of subsidized LPG cylinders available annually to Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries from nine to four, in line with the average household consumption level, a senior government official said on Monday, PTI reported. Under the flagship scheme launched in May 2016, beneficiaries were initially entitled to 12 subsidized 14.2 kg LPG cylinders every year. Last year the quota was reduced to nine cylinders and now it has been reduced to four. At a media briefing, Praveen Mal Khanuja, additional secretary, Ministry of Petroleum and Natural Gas, said the revised eligibility broadly reflects the average annual consumption of Ujjwala beneficiaries. To promote clean cooking fuel and improve affordability, the government introduced a targeted subsidy of Rs 200 per 14.2 kg LPG cylinder in May 2022, which is credited directly into the bank accounts of beneficiaries after each refill purchase. In October 2023, the subsidy was increased to Rs 300 per cylinder, with the proportionate benefit extended to 5 kg cylinders. The latest cut in the subsidized quota has come amid repeated increases in LPG prices. The retail price of a 14.2 kg LPG cylinder in Delhi has cumulatively increased by Rs 89 in two hikes in the last three months, including the latest increase on June 7, taking the price to Rs 942 per cylinder. After adjustment of subsidy of Rs 300, PMUY beneficiaries have to pay Rs 642. Khanuja said the revised eligibility broadly matches the average consumption pattern among PMUY households. According to him, beneficiaries effectively get support of around Rs 1,000 per cylinder compared to the government’s estimated supply cost of around Rs 1,600 per cylinder. On June 7, the price of LPG was increased by Rs 29 per cylinder. “This increase works out to one rupee per day,” he said, adding that for a family of five this increase works out to about 20 paise per day. Khanuja said Indian households continue to pay the lowest cooking gas prices globally despite a sharp rise in international LPG prices following the disruptions in the Middle East. He said the cost of supplying a domestic LPG cylinder has crossed Rs 1,600 due to the rise in global LPG prices following the outbreak of the Middle East conflict in late February. India’s LPG import cost is linked to the Saudi contract price (CP), the global benchmark for the fuel. The benchmark has surged nearly 46% since February as disruptions around the Strait of Hormuz have disrupted supplies from the Gulf region. The government has provided Rs 52,000 crore in LPG subsidy from 2022, he said. Khanuja said that despite the recent price hike, oil marketing companies are incurring a loss of about Rs 700 on the sale of every 14.2 kg LPG cylinder. He said that oil companies are selling petrol and diesel at prices lower than cost. The under-recovery on petrol is Rs 6 per litre, while the under-recovery on diesel is around Rs 30 per litre. Explaining the reason behind the price hike, he said, “Overall, oil companies are incurring a loss of Rs 600-700 crore.” Apart from LPG, oil companies have increased the prices of petrol and diesel by about Rs 7.50 per liter in four installments last month. CNG prices have also been increased by Rs 6 per kg.