An oil PSU grant of Rs 22,000 crore to cover LPG losses has been approved by the government
CABINET approved a one-time grant of Rs 22,000 crore to three state-owned fuel companies to cover two years’ losses from selling cooking gas below cost.
Consumers can buy domestic LPG from Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) at government-regulated prices. From June 2020 to June 2022, they’ll get a grant for the losses they incurred selling LPG below cost to consumers.
An official statement said, “this decision will support the PSU’s commitment to the Atmanirbhar Bharat Abhiyaan, as well as the procurement of Make in India products.”
From June 2020 to June 2022, LPG prices rose 300 percent internationally.
‘To protect domestic LPG consumers from fluctuations in international LPG prices, the cost increase wasn’t fully passed on, Information and Broadcasting Minister Anurag Thakur told reporters.
Thus, domestic LPG prices have only risen by 72 percent during this period, adding the three companies have lost a lot of money.
“Despite these losses, all three PSU oil marketing companies have been supplying this essential cooking fuel to the country for years.