New Delhi: The Cabinet on Wednesday approved the proposal of the ministry of petroleum and natural gas to give one-time grant of Rs22,000 crore to three state-run oil marketing companies (OMCs) for the losses incurred in domestic LPG business.
The Union Cabinet, chaired by Prime Minister Narendra Modi, also said that the grant would be distributed among Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL).
LPG prices are increasing across the world. One-time grant of Rs 22,000 crores has been given to Oil Marketing Companies of Public Sector Undertakings so that the burden of rising prices does not fall on common people: Union Minister @ianuragthakur pic.twitter.com/xeotvmoRUH
— Dynamite News (@DynamiteNews_) October 12, 2022
The approval, the official statement said, would help the state-run oil companies to continue their commitment to the Atmanirbhar Bharat Abhiyaan, ensuring unhindered domestic LPG supplies and also supporting the procurement of Make in India products.
Domestic LPG cylinders are supplied at regulated prices to consumers by the public sector oil marketing companies namely, IOCL, BPCL and HPCL.
The statement also said between June 2020 and June 2022, the international prices of liquefied petroleum gas (LPG) increased by about 300 per cent.
However, the statement said that to insulate consumers from fluctuations in international LPG prices, the cost increase was not fully passed on to consumers of domestic LPG.
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Accordingly, domestic LPG prices had been raised by only 72 per cent during this period, it stated, adding that this had led to significant losses for these OMCs.
Despite these losses, the three state-run OMCs have ensured continuous supplies of this essential cooking fuel in the country, the official statement said. (ANI)
