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Polity & Governance GS 2 In the news 3 times

India's LPG Sector

Pahal Scheme and Energy Access

Liquefied Petroleum Gas (LPG) is the primary cooking fuel for approximately 340 million households in India, making its supply security a direct welfare and food security issue. The government has actively promoted LPG access through several flagship schemes.

Key details
  • Pradhan Mantri Ujjwala Yojana (PMUY): Launched May 2016; provides free LPG connections to Below Poverty Line (BPL) households. Target: 80 million connections by 2020 (later expanded to 90 million+). Nodal ministry: Ministry of Petroleum and Natural Gas.
  • Pahal (DBTL — Direct Benefit Transfer for LPG): Replaced the earlier subsidy system; LPG subsidy transferred directly to Aadhaar-linked bank accounts of consumers. World's largest cash transfer scheme by beneficiary count at launch.
  • As of FY25, approximately 340 million LPG connections exist in India (across urban and rural households).
  • Three public sector Oil Marketing Companies (OMCs) distribute LPG: Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL).
  • LPG prices are deregulated for market-priced cylinders above the subsidised quota; subsidised cylinders (14.2 kg) are provided at controlled rates.
In the news

Tracked since March 09, 2026 · last seen April 11, 2026 · updates as the daily brief publishes

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