Ujjwala Scheme: How the flagship schemed fueled LPG demand 

India’s LPG consumers more than doubled in the last decade, and over half of them were new consumers added under the Pradhan Mantri Ujjwala Yojana (PMUY) launched in May 2016 to provide subsidised LPG connections to poor households.

The focus on India’s growing cooking gas consumption comes amidst reports of an LPG crisis due to escalating conflict in West Asia. The government has assured that the situation is under control and has priority for providing LPG availability to domestic consumers.    

The PMUY beneficiaries reached about 104 million as of January 2026, resulting in an increase in the per capita consumption of PMUY beneficiaries in terms of 14.2 kg LPG cylinders taken per year from 3.68 cylinders in FY 2021-22 to 4.47 cylinders in FY 2024-25.

To make LPG more affordable to consumers and ensure sustained usage of LPG by them, the Government started a targeted subsidy of Rs 200 per 14.2 kg cylinder for up to 12 refills per year to the PMUY consumers in May 2022. In October 2023, the government increased the targeted subsidy to Rs 300 per 14.2 kg cylinder for up to 12 refills per year.

The LPG demand in India is set to grow steadily in the years to come.

The International Energy Agency (IEA), in a report last year, has projected India's natural gas demand set for 60% rise by 2030, supported by the upcoming global LNG supply wave.

The number of CNG stations and residential connections is expected to nearly double again, with the gas transmission grid expanding by an additional 50% by 2030.  

The infrastructure development is playing a crucial role in enabling market growth. Since 2019, India has almost quadrupled its number of compressed natural gas (CNG) stations and more than doubled the number of residential gas connections, while extending its transmission pipeline network by 40%, it said.

The city gas distribution sector is expected to lead consumption growth in India between now and 2030, supported by rapid CNG infrastructure expansion and competitive pricing against liquid fuels.