India’s petroleum and natural gas sector made progress in 2025, improving fuel access, gas infrastructure, and alternative fuels, according to the Ministry of Petroleum and Natural Gas. While the sector grew steadily, analysts say challenges such as consistent usage, dependence on subsidies, and import reliance are still unresolved.
Under the Pradhan Mantri Ujjwala Yojana (PMUY), the number of LPG beneficiaries reached around 10.35 crore as of December 1, 2025. To meet remaining demand, the government approved 25 lakh additional LPG connections for FY26 and made eligibility easier by introducing a single deprivation declaration.
However, having more LPG connections has not fully translated into regular usage. Average LPG consumption rose from about three refills per household in FY20 to 4.47 refills in FY25, with an estimated 4.85 refills in FY26. This is still below the level needed for complete fuel switching from traditional fuels. To make LPG more affordable, PMUY beneficiaries continued receiving a ₹300 subsidy per cylinder for up to nine refills a year, showing that financial support remains key to adoption.
The ministry also worked on improving subsidy delivery using biometric Aadhaar authentication. By December 2025, 71% of PMUY users and 62% of non-PMUY users were verified through Aadhaar. A nationwide mobile-based authentication drive was also launched to reduce duplication and prevent subsidy leakages.