LPG Subsidy Misses Rural India as Fuel Costs Drive Return to Firewood

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AuthorKavya Nair|Published at:
LPG Subsidy Misses Rural India as Fuel Costs Drive Return to Firewood
Overview

Many rural Indian families, especially in Chhattisgarh and Madhya Pradesh, still use firewood for cooking despite government LPG subsidies like the Pradhan Mantri Ujjwala Yojana (PMUY). High LPG refill prices and rising transport costs are pushing households back to traditional fuels. This shows a persistent affordability gap, where access to clean fuel doesn't always translate to practical use, affecting health and environmental targets.

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Biomass Fuel Remains Dominant in Rural Homes

National surveys reveal that biomass fuels like firewood and dung cakes remain the primary cooking sources for a significant portion of rural India. The latest National Family Health Survey (NFHS-5) found 56.1% of rural households still rely on these fuels, even with programs like the Pradhan Mantri Ujjwala Yojana (PMUY) in place. Data from the National Sample Survey Office (NSSO) showed over 46% of rural homes used biomass fuels in 2020-21. This reliance is particularly high in states like Chhattisgarh, where over 84% of households use biomass, including 9% that use dung cakes.

Rising Fuel Costs Strain Rural Budgets

Rural families are struggling with increasing costs for fuel, lighting, and transportation. According to NSSO's Household Consumption-Expenditure Surveys, these expenses have surged by 224% from 2011-12 to 2023-24. Fuel and related costs now make up 13.7% of total household spending, growing faster than food expenses. In Chhattisgarh, energy costs account for 31% of non-food spending, with fuel and lighting alone representing 8.77% and conveyance 8.13% of the state's average monthly per capita expenditure of Rs 2,466.

Cost Barriers Hinder LPG Program Success

The Pradhan Mantri Ujjwala Yojana (PMUY), established in May 2016 to offer clean cooking fuel, is encountering major challenges. Many beneficiaries find that an LPG cylinder only lasts about 10 to 15 days. This means the cost of the two refills often needed each month is too high for their budgets. Even families with more than one LPG connection find the ongoing expenses difficult to manage. Consequently, refill rates are low. A senior official from the Ministry of Petroleum and Natural Gas (MoPNG) stated that PMUY beneficiaries typically use fewer than three cylinders per year, far below the seven to eight cylinders used by households that exclusively use LPG. In 2024-25, 14% of all LPG connections were noted as "inactive."

Global Fuelwood Demand Drives Forest Loss

India's reliance on fuelwood is part of a larger global picture. A report from the International Institute for Sustainable Development in February 2026 noted that 37% of Indian households, and 51% in rural areas, still use polluting cooking fuels. Worldwide, the demand for woodfuel contributes significantly to forest loss, as highlighted by a United Nations report in May 2026. Adding to the financial strain on rural families, firewood prices have risen to Rs 1,400-1,500 per quintal in some regions, and dung cakes now cost Rs 2 each, worsening the affordability problem.

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