Centre To Grant Rs 22,000 Crore To These State-Run Oil Firms To Cover Losses- Know More

The central government is set to extend a one-time grant to three state-owned fuel retailers of ₹22,000 crores to cover the losses they incurred on selling domestic cooking gas LPG below cost in the past two years, I&B Minister Anurag Thakur announced on October 12.

Headed by Prime Minister Narendra Modi, the Union Cabinet, at a meeting on Wednesday, officially granted the one-time economic funding to three oil marketing companies - Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL) and Indian Oil Corporation (IOC), Thakur was quoted as saying by NDTV.

Relief For BPCL, HPCL & IOC!

This grant mentioned above is set to cover the losses these firms incurred on selling LPG below cost to consumers between June 2020 and June 2022. The three firms sell domestic LPG at all centre-regulated prices to Indian consumers.

During June 2020 and June 2022, the international prices of LPG went up by approximately 300 per cent around the globe. However, an official statement stated that it insulated people from fluctuations in international prices of LPG; the cost inflation was not fully passed on to consumers of domestic LPG.

Domestic LPG Prices!

From June 2020 to June 22, domestic LPG prices rose by only 72 per cent, which led to significant losses for the three firms.

"Despite these losses, the three PSU OMCs have ensured continuous supplies of this essential cooking fuel in the country. The government has therefore decided to give a one-time grant to the three PSU OMCs for these losses in domestic LPG," it stated.

The Union Cabinet granted a one-time grant amounting to ₹22,000 crores to the three oil marketing companies (OMCs) as a result.

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