New Delhi: The Union Cabinet today approved the proposal of the Ministry of Petroleum & Natural Gas to give Rs.22,000 crore one-time grant to three Public Sector Undertaking Oil Marketing Companies (PSU OMCs) – Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL). The grant is sanctioned in view of the losses incurred by these companies in Domestic LPG.
The Ministry stated that the approval will help the PSU OMCs “continue their commitment to the Atmanirbhar Bharat Abhiyaan, ensuring unhindered domestic LPG supplies and supporting the procurement of Make in India products”.
Domestic LPG Cylinders are supplied at regulated prices to consumers by the public sector Oil Marketing companies namely, IOCL, BPCL, and HPCL.
During the period from June 2020 to June 2022, the international prices of LPG increased by around 300%. However, to insulate consumers from fluctuations in international LPG prices, the cost increase was not fully passed on to consumers of domestic LPG. Accordingly, the Ministry said domestic LPG prices have raised by only 72% during this period, leading to “significant losses” for these OMCs.
“Despite these losses, the three PSU OMCs have ensured continuous supplies of this essential cooking fuel in the country, the Ministry added.
– global bihari bureau
