Cabinet okays Rs22k crore one-time grant to 3 oil marketing firms for losses in LPG

New Delhi, October 12: The Union Cabinet on Wednesday approved the proposal of the union Ministry of Petroleum & Natural Gas to give one-time grant of Rs 22,000 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 the grant would be distributed among Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL). 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. Also Read | Punjab Govt allows 2-hour window for bursting green crackers on Diwali, Gurpurab Domestic LPG cylinders are supplied at regulated prices to consumers by the public sector oil marketing companies namely, IOCL, BPCL and HPCL. The statement 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 to insulate consumers from fluctuations in international LPG prices, the cost increase was not fully passed on to consumers of domestic LPG. [caption id="attachment_705215" align="aligncenter" width="1042"] Domestic LPG cylinders are supplied at regulated prices to consumers by the public sector oil marketing companies namely, IOCL, BPCL and HPCL.[/caption] 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. Also Read | Will have meeting with Haryana CM, other officials over SYL issue: Bhagwant Mann -PTC News with ANI inputs