Delhi, 8 August (H.S.): The Union Cabinet, led by Prime Minister Narendra Modi, has approved a Rs.30,000 crore compensation to three Public Sector Oil Marketing Companies (IOCL, BPCL, and HPCL) for losses from selling domestic LPG below market prices. The Ministry of Petroleum and Natural Gas will oversee the compensation distribution among the companies, to be paid in twelve installments.

Domestic LPG is sold at regulated prices despite high international LPG prices, leading to significant under-recoveries for the OMCs. This decision aims to allow these companies to continue procurement of crude and LPG, manage debt, and maintain capital expenditure, ensuring an uninterrupted supply of LPG cylinders to households. It reflects the government’s commitment to protect consumers from global price volatility and supports the financial stability of the OMCs.

Additionally, it emphasizes the goal of providing widespread access to clean cooking fuel, especially under initiatives like the PM Ujjwala Yojana.

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Hindusthan Samachar / Jun Sarkar