Budget 2026 : Curb on Domestic Gas Inflation? Possibility of Major Announcements for Ujjwala Scheme in Budget 2026

With only a few days left for the central government's 2026 budget to be presented, millions of housewives across the country are focused on what announcements the finance minister will make. There is particular curiosity about whether there will be relief in reducing the prices of cooking gas for the beneficiaries of the Pradhan Mantri Ujjwala Yojana. As the prices of crude oil in the international market continue to fluctuate, the government may take special measures in the budget to protect ordinary citizens from inflation.

Currently, under the Ujjwala scheme, a subsidy of 300 rupees for a 14.2 kg LPG cylinder is directly deposited into the bank accounts of beneficiaries. However, considering the rising inflation and increasing gas prices, the government might consider increasing this subsidy or the number of refills available throughout the year. It is speculated that the government's main objective is to provide complete protection to approximately 103.3 million Ujjwala beneficiaries from international price hikes.

According to sources, the government may allocate more than 12,000 crore rupees for LPG subsidy in the coming financial year. Currently, the price of a domestic LPG cylinder in Delhi is around 853 rupees, and there is a growing demand to further reduce this rate through subsidy. Along with this, the announcement to increase the number of new free gas connections under the “Ujjwala 3.0” scheme is also likely to be made in the budget, which will be the government's attempt to achieve 100 percent coverage.

Meanwhile, due to the policies of the US Federal Reserve and against the backdrop of the global energy crisis, India is using fuel subsidies as a shield to protect the economy. With a Rs 111 increase in the price of commercial gas cylinders in January 2026, there is concern that domestic gas will also become more expensive. Therefore, a special 'price stabilization fund' may be included in the budget to keep domestic gas prices stable.

Additionally, there is a possibility of announcing extra cashback or incentive schemes for beneficiaries who book refills on time and make digital payments. This will increase transparency and reduce the role of intermediaries. The government may also focus on micro-loan schemes for women, as well as promoting alternative energy sources like biogas and solar stoves. The Ujjwala scheme has played a crucial role in balancing women's health, empowerment, and kitchen expenses, and it is expected to receive further support in the 2026 budget.