The Union Cabinet, in its meeting on October 12, approved a one-time grant of Rs 22,000 crore to state-run oil marketing companies (OMCs) for losses incurred in liquefied petroleum gas (LPG).
Thakur said, “LPG prices are increasing across the world. A one-time grant of Rs 22,000 crore has been given to OMCs so that the burden of rising prices does not fall on common people.”
Between June 2020 to June 2022, the international prices of LPG soared by around 300 percent. Accordingly, domestic LPG prices have risen by only 72 percent during this period, it said adding this led to significant losses for PSU OMCs.
Together, state-run fuel retailers – Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp – supply more than 90 percent of India’s petroleum fuels. These three OMCs suffered the worst quarterly losses as the firms absorbed record international crude prices.
He also added, “This decision will help the PSU OMCs to continue their commitment to the Atmanirbhar Bharat Abhiyaan, ensuring unhindered domestic LPG supplies and also supporting the procurement of Make in India products.”