Context:
The recent LPG supply crisis (March 2026) has exposed vulnerabilities in the Pradhan Mantri Ujjwala Yojana (PMUY), highlighting issues of import dependence, affordability, and welfare delivery gaps.
Key Highlights:
- Supply Disruption:
- Triggered by West Asia conflict
- India imports ~60% of LPG
- 90% supply passes through Strait of Hormuz
- Inadequate Preparedness:
- Strategic reserves cover only ~9.5 days of crude supply
- Lack of LPG-specific buffer stocks
- Impact on Beneficiaries:
- PMUY covers 32.83 crore households
- Many households reverting to biomass due to high refill costs
- Social Dimension:
- SC/ST households face lower LPG access
- Women disproportionately affected
Relevant Prelims Points:
- PMUY (2016):
- Provides free LPG connections to BPL women
- Direct Benefit Transfer (DBT):
- Subsidy transferred directly to beneficiaries’ bank accounts
- Strait of Hormuz:
- Critical global oil transit chokepoint
- Strategic Petroleum Reserves:
- Emergency reserves to manage energy shocks
Relevant Mains Points:
- Structural Weaknesses in PMUY:
- Focus on access (connections) rather than sustained usage
- Lack of supply-side resilience mechanisms
- Energy Security Concerns:
- High import dependence → exposure to geopolitical risks
- Insufficient storage and diversification
- Affordability Issues:
- Rising LPG prices reduce refill rates
- Leads to energy poverty and biomass fallback
- Social Justice Dimension:
- Reinforces inequality in access
- Gender burden → women revert to traditional fuels
- Governance Gaps:
- Weak crisis preparedness
- Over-reliance on global supply chains
- Way Forward:
- Create strategic LPG reserves (at least 2 months buffer)
- Diversify import sources and transport routes
- Promote community biogas (GOBARdhan scheme)
- Ensure affordable refill pricing mechanisms
- Strengthen last-mile distribution networks
- Develop transparent crisis response protocols
UPSC Relevance:
• GS 2: Governance & Social Justice – Welfare schemes effectiveness
• GS 3: Economy – Energy security
• GS 3: Environment – Clean cooking fuel transition
• Prelims: PMUY, DBT, Strait of Hormuz