This Diwali, millions of Indian gas users are set to receive a festive financial reprieve as the government unveils a special ₹300 discount on LPG cylinders, paired with significant new rules designed to increase household savings.
These initiatives are not just a seasonal gesture—they reflect a broad push towards affordable energy access for all, aligning with the wider vision of social welfare and cost-of-living relief.
Below, the full details are explained across comprehensive sections and up-to-date data, with an emphasis on clarity and usefulness for every household.
Diwali 2025: The LPG Cylinder Subsidy Gift
This festive season, central and several state governments have announced a direct benefit transfer (DBT) subsidy of ₹300 per LPG cylinder for eligible households, targeting primarily women enrolled under the Pradhan Mantri Ujjwala Yojana (PMUY).
The subsidy extension, which began in October and continues into the next fiscal, aims to offset the impact of rising fuel prices and bring immediate relief during the Diwali rush.
How the ₹300 Off Scheme Works
The process is simple: eligible consumers book their cylinder and pay the full market price at the agency. The government then directly credits the ₹300 subsidy to the beneficiary’s linked bank account, ensuring transparency and traceability.
With the growing adoption of DBT, funds reach households quickly, offering instant savings in a time of rising expenses.
Eligibility and New Compliance Rules
- The full subsidy is available to women from poor and marginalised families registered under the PMUY scheme.
- E-KYC completion is now mandatory—consumers must verify their identity through Aadhaar to activate the subsidy. Delayed or incomplete e-KYC can result in payment lags, so all beneficiaries are urged to complete this formality without delay.
- The benefit is intended for families that do not pay income tax and are not classified as high-income earners.
- Cylinders can be availed a fixed number of times (usually up to 12 per year) at the subsidised rate.
Table: Key Features of the Diwali 2025 LPG Subsidy Offer
| Feature | Description | Benefit to Users |
| Discount Amount | ₹300 per cylinder (up to 12/year) | Up to ₹3,600 annual saving |
| Eligibility | PMUY women beneficiaries, certain states, e-KYC complete | Wide base, mostly rural |
| Payment Mode | Direct transfer after purchase | Instant bank credit |
| Seasonal Free Cylinder* | In some states, free LPG during Diwali & Holi | Extra festive relief |
| Market Price (Delhi Example) | Around ₹853 per 14.2 kg cylinder (as of Oct 2025) | Significant price reduction |
*Note: Some state schemes offer free cylinders once or twice a year during major festivals, with regular subsidy available for other refills.
Additional State-Level Festive Offers
States like Uttar Pradesh have rolled out a “Free Gas Cylinder Scheme” for PMUY beneficiaries, particularly for Diwali and Holi. Eligible women can receive two free cylinders a year.
The process requires full payment at booking, with the entire amount subsequently reimbursed by the state government via DBT. Nearly 2.5 crore (25 million) households in UP alone will receive this benefit. Beneficiaries must ensure their e-KYC is up to date to avoid payment delays.
Explaining the New Rule: E-KYC and Direct Transfer
As of October 2025, e-KYC (electronic Know Your Customer) is compulsory to claim the subsidy or free cylinder benefit.
Only those who have completed digital authentication using their Aadhaar and banking details will have the subsidy instantly credited into their account after cylinder purchase. This change was implemented to counteract fraud and ensure only genuine, eligible families receive support.
How Much Money Will You Really Save?
Depending on the number of cylinders refilled per year and the presence of state-level free cylinder schemes, savings may be considerable, especially for families relying solely on government support.
| Example Scenario | Number of Subsidised Cylinders/Year | Market Price (₹) | Total Govt Subsidy/Year (₹) | Annual Household Saving (₹) |
| Typical Ujjwala Family in UP | 9 | 853 | 2,700 (₹300 x 9) | 2,700 – eligible only |
| Family Availing 2 Free + 10 Subsidy | 12 | 853 | 600 (for 2 free) + 3,000 | 3,600 |
| State Scheme—2 Free/Year Only | 2 | 853 | 1,706 (full reimbursement) | 1,706 |
For regular domestic users not under Ujjwala, no direct seasonal discount is offered, but state and market-level price drops periodically reduce costs.
LPG Cylinder Price Movement: October 2025 Update
Despite the subsidy and free cylinder gifts, oil marketing companies implemented a minor increase for commercial cylinder prices at the start of October, while domestic (14 kg) prices stayed fairly stable. Current average prices in major cities are as follows:
| City | Domestic LPG Price (₹, Oct 2025) |
| Delhi | 853 |
| Mumbai | 853 |
| Kolkata | 879 |
| Chennai | 868 |
(Note: Subsidy is over and above the market price – eligible users pay up front, then receive the benefit directly.)
Social and Economic Impact of the Festive Subsidy
The recurring LPG giveaway and targeted subsidies prove vital for poor households. For families previously unable to consistently afford regular cylinder refills, these government interventions translate directly into better nutrition, convenience, and female empowerment.
Increased annual savings are also redirected towards education, healthcare, or festival expenses, with the hope of bolstering the rural economy during festive months.
Tips for Availing Maximum Benefit
- Complete your e-KYC without delay through your gas agency or online platforms.
- Book LPG cylinders using bank-linked phone numbers to avoid transaction errors.
- Track reimbursement via SMS or gas agency portals post-purchase for subsidy credits.
Looking Forward: The Government’s Broader Energy Vision
Combined with earlier flagship programmes, the subsidy and new compliance rules represent a larger movement towards universal, clean energy access in India.
By 2026, the government aims to further expand the PMUY’s outreach, ensure efficient direct benefit disbursal, and stabilise fuel prices despite international fluctuations.
Frequently Asked Questions (FAQs)
1. Who qualifies for the ₹300 LPG subsidy during Diwali 2025?
Primarily, women enrolled under the Pradhan Mantri Ujjwala Yojana with up-to-date e-KYC and belonging to non-tax-paying, low-income families are eligible.
2. How do gas users claim the subsidy or free cylinder?
Users pay the market price at booking, and the subsidy or reimbursement is directly credited to their bank account post-purchase.
3. Is e-KYC mandatory for the new LPG benefit?
Yes. As of October 2025, e-KYC completion is a strict requirement for claiming any government LPG subsidy or free cylinder.
4. Can regular (non-Ujjwala) customers get the Diwali discount?
The special ₹300 benefit and free cylinder offers are targeted at Ujjwala and select state beneficiaries, but regular price cuts or minor discounts may occur for other users depending on government policy and market rates.
5. What is the annual limit on subsidised or free cylinders?
Eligible families can generally avail up to 12 subsidised refills annually, while certain state schemes offer one or two free refills per year during major festivals.
