The proposal from the ministry of petroleum and natural gas to provide three state-run oil marketing companies (OMCs) with a one-time grant of Rs 22,000 crore to offset losses in the domestic LPG business was approved by the Cabinet on Wednesday.
The award will be allocated among the Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation, according to the Union Cabinet, which is presided over by Prime Minister Narendra Modi (HPCL). According to the official announcement, the clearance will boost the state-run oil companies’ commitment to the Atmanirbhar Bharat Abhiyaan by guaranteeing uninterrupted domestic LPG supply and promoting the purchase of Made in India goods.
The public-sector oil marketing corporations, IOCL, BPCL, and HPCL, provide domestic LPG cylinders to customers at set prices.
The statement added that liquefied petroleum gas (LPG) prices surged by around 300% on a global scale between June 2020 and June 2022. According to the statement, the cost rise was partially passed on to local LPG consumers in order to protect them from changes in the price of LPG abroad. It added that this resulted in considerable losses for these OMCs as domestic LPG prices had only increased by 72% during this time.
The three state-run OMCs have maintained consistent supplies of this crucial cooking fuel across the nation despite these losses, according to the official statement.
