The Pradhan Mantri Ujjwala Yojana (PMUY) is a government scheme launched in 2016 by Prime Minister Narendra Modi. The scheme originally envisaged the distribution of 50 million LPG connections to women below the poverty line. Later, it aimed to provide LPG connections to eight crore women by March 2020. Three Participant Oil companies are- IOCL, BPCL and HPCL. The Central Government recently cut excise duty on petrol by Rs 8 per litre to Rs 19.1 per litre and that on diesel by Rs 6 per litre to Rs 15.8 per litre to give relief to consumers, a move that would cost the exchequer a massive Rs 1 trillion annually. The cut in assorted excise levies on auto fuels will straightaway lead to a reduction in state VAT as is levied on a base that includes the Centre’s taxes. Additionally, over 90 million beneficiaries of the Pradhan Mantri Ujjwala Yojana will be given a subsidy of Rs 200 per LPG cylinder for up to 12 refills in a year; the revenue impact of the measure is around Rs 6,100 crore a year. Â
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