Currently, PMUY beneficiaries receive a ₹300 per cylinder subsidy for up to 12 cylinders annually, after the latest hike in subsidy announced last month.

“Although the beneficiary base under PMUY has increased, customers under the scheme would require more relief, and further steps may be taken in coming months,” one of the people cited above said, requesting anonymity.

The move is being considered to ease inflationary pressures on the common man, said a second person, also declining to be named.

Retail inflation has stayed elevated in recent months. India’s consumer price inflation was above the Reserve Bank of India’s (RBI’s) tolerance band of 4-6% for several months before easing to 5.02% in September.

Queries emailed to the spokespeople for the ministries of petroleum and natural gas and finance remained unanswered.

The plan to shield PMUY beneficiaries from high energy costs comes at a time of rising international oil and gas prices amid the Israel-Hamas conflict in West Asia. In the past few months, the Centre has announced a series of measures to cool cooking gas prices.

On 4 October, the Union cabinet approved an additional ₹100 subsidy on cooking gas for more than 95 million PMUY beneficiaries, taking the total subsidy to ₹300 per cylinder. In September, the cabinet approved slashing LPG prices by ₹200 per cylinder for all customers in the country.

PMUY beneficiaries pay ₹603 per cylinder of cooking gas, which costs ₹903 in the national capital.

The government rolled out PMUY in 2016 to provide cleaner cooking fuel to poor households. The beneficiaries were identified via the socio-economic caste census (SECC) list or from seven other identified categories such as scheduled caste households, scheduled tribe households, most backward classes and beneficiaries of PM Awas Yojana (Gramin).

In September, the government announced a ₹1,650 crore additional outlay for providing 7.5 million additional free cooking gas connections over three years from FY24 to FY26.

Despite the recent energy price volatility, state-run fuel retailers have, to a large extent, absorbed the impact of high prices without fully passing it on to consumers. In October last year, the government announced a one-time ₹22,000 crore compensation to state-run fuel retailers to offset their losses from selling domestic cooking gas below cost.

Similarly, petrol and diesel prices have remained steady since May last year, even as global crude prices surged in the first half of 2022. In May, the government cut excise duty on both petrol and diesel. However, the government has been criticized for the state-controlled fuel retailers keeping retail prices unchanged despite subsequent declines in global crude prices.

On 5 November, Mint reported that the public may be spared fuel price hikes despite the war in West Asia stoking crude price volatility as state-run oil marketing companies (OMCs) are expected to absorb the higher costs, even as they face under-recoveries in selling fuel.

N.R. Bhanumurthy, the vice chancellor of Dr BR Ambedkar School of Economics University, said: “The ease in inflation may be limited to a couple of months only as food prices have started rising. Further the conflict in [West Asia] may impact oil prices and the impact of the El Niño phenomenon may be witnessed starting December which may further push food prices higher. So, inflationary pressure is seen in the months ahead and government may keep these factors in mind.”

With five states going to polls starting Tuesday and general elections likely in April-May next year, the government has made several announcements aimed at providing relief to the common man.