Union Cabinet approves Rs 30,000 cr subsidy to compensate oil firms for LPG losses
NEW DELHI, Aug 8 (PTI): Cabinet on Friday approved Rs 30,000 crore LPG subsidy to state-run oil companies — Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) — to compensate for losses incurred from selling LPG at below cost over the past 15 months.
The compensation to oil marketing companies (OMCs) will be paid in 12 tranches, as per an official statement.
The international prices of LPG were at high levels during 2024-25 and continue to remain high. However, to insulate consumers from fluctuations in international LPG prices, the increase in cost was not passed on to consumers of domestic LPG, leading to significant losses for the three OMCs.
