Rural Energy Squeeze: Costs Soar, LPG Use Dips Despite Ujjwala

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AuthorIshaan Verma|Published at:
Rural Energy Squeeze: Costs Soar, LPG Use Dips Despite Ujjwala
Overview

Rural households in Chhattisgarh are grappling with escalating energy expenses, forcing a return to biomass fuels like firewood and dung cakes. Despite the Pradhan Mantri Ujjwala Yojana (PMUY) aiming to provide clean cooking fuel, rising LPG prices post-geopolitical disruption and stagnant wages mean many families find traditional methods more economical, though detrimental to health and environment. Energy expenditure is now outstripping food cost increases, creating a significant economic strain.

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This growing energy expenditure shows how strained finances are for rural households. Data from the NSSO's Household Consumption Expenditure Survey (2022-23) reveals a dramatic rise in monthly per capita spending on energy, climbing from ₹174 (12% of total expenditure) in 2011-12 to ₹565 (13.7%) in 2023-24—an increase of 224 percent. This increase significantly outpaces the 156 percent rise in food expenditure over the same period. In Chhattisgarh, energy costs, including fuel, lighting, and conveyance, make up over 16 percent of total rural spending.

Escalating Fuel Costs Hit Households

The economic realities are forcing difficult choices. Madhu Mandavi, a daily wage labourer, spends nearly ₹1,000 on an LPG refill that lasts less than a month for her family of four. Following a geopolitical conflict disrupting supply chains on February 28, 2026, prices surged. Firewood now costs ₹1,400-₹1,500 per quintal, a 40-50 percent increase, while dung cakes sell for ₹2 each. A 14.2 kg LPG cylinder is ₹200-₹300 costlier than its previous ₹920 price.

Kuleswar Sahu, an electrician, faces this challenge with his family, despite having access to the Pradhan Mantri Ujjwala Yojana (PMUY). Although PMUY offers free stoves and subsidized refills, a gap remains between who can access the fuel and who consistently uses it. For 2025–26, the government aims to provide a ₹300 subsidy per cylinder, usable for nine refills annually, with about 105.4 million beneficiaries covered as of April 23, 2026. Still, Kuleswar's calculations lead him to prioritize other expenses, pointing to problems in how the program is targeted and verified.

Biomass Reliance: A Health and Gender Burden

This economic strain pushes many back to traditional fuels. The National Sample Survey Office's (NSSO) 78th round survey (2020-21) found that 84.2 percent of households in Chhattisgarh rely on biomass like firewood and dung cake, with only 14.8 percent using cleaner fuels. The continued reliance on biomass comes at a severe cost, primarily household air pollution (HAP). Globally, HAP caused an estimated 3.2 million premature deaths in 2020, with India accounting for approximately 0.6 million deaths in 2019 due to indoor fine particulate matter.

The burden falls most heavily on women. According to the Food and Agriculture Organization, women handle the vast majority of fuelwood-related tasks. In the surveyed households, women almost always managed fuelwood collection and cooking, often spending up to five hours daily on these chores. This adds to their total workday, making it 11-14 hours, affecting their health and well-being while contributing nearly 30 percent to India's outdoor air pollution.

Policy Gaps and Shifting Expenditures

The continued reliance on biomass, even with PMUY's reach, makes us question how well the scheme works to ensure people keep using it. The rising cost of energy compared to food is a growing challenge for rural lives. As daily wages see modest increases, they struggle to keep pace with the rising prices of essential goods and fuel. Tackling this complex mix of economic pressure, health results, and gender fairness is a big challenge for development policy.

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