Anurag Thakur, the minister of information and broadcasting, announced on Wednesday that the Union cabinet had approved a one-time grant of Rs 22,000 crore to three state-owned fuel retailers to make up for the losses they incurred from selling domestic cooking gas LPG below cost in the previous two years.
The choice was made on Wednesday during a cabinet meeting presided over by Prime Minister Narendra Modi. Three oil marketing organizations — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) — will receive the one-time donation, Thakur said during a press conference.
The funding would be used to offset the losses they experienced from selling LPG below cost to consumers between June 2020 and June 2022. The three companies provide clients with household LPG at prices that are governed by the government. LPG prices increased by over 300% on a global scale between June 2020 and June 2022.
According to the government, the clearance will assist the Public Sector Undertaking Oil Marketing Companies (PSU OMCs) in maintaining their dedication to the “Atmanirbhar Bharat Abhiyaan,” assuring uninterrupted domestic LPG supply and assisting in the purchase of Make in India products.
