New Delhi: The Union Cabinet on Wednesday approved subsidies for oil marketing companies (OMCs) like Indian Oil Corporation Ltd (IOCL), Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) on liquefied petroleum gas (LPG).
“LPG prices are increasing across the world. One-time grant of Rs 22,000 crores has been given to Oil Marketing Companies of Public Sector Undertakings so that the burden of rising prices does not fall on common people”,Union Minister Anurag Thakur said, adding that the decision will help PSU OMCs in their commitment to AtmaNirbhar Bharat Abhiyaan (campaign) by ensuring unhindered domestic LPG supplies.
Cabinet approves Rs. 22,000 crore as one time grant to PSU OMCs for losses in Domestic LPG
It will help the PSU OMCs to continue their commitment to the Atmanirbhar Bharat Abhiyaan, ensuring unhindered domestic LPG supplies.#CabinetDecisions
— Satyendra Prakash (@DG_PIB) October 12, 2022
The Cabinet has cleared Rs 22,000 crore for these companies for losses they have incurred on retail sales of petrol and diesel. The OMCs have incurred heavy losses on the sale of petrol and diesel due to non-revision of prices for a record 137 days from November 4, 2021 to March 22, 2022.
Earlier this month, the oil marketing companies had slashed the 19-kg commercial LPG cylinder price by Rs 25.5. Following this the commercial cylinder is being sold at Rs 1,859 in Delhi. However, there was no change in domestic LPG prices and it continues to be sold at Rs 1,053 per cylinder in Delhi.
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