The authorities will prolong a one-time grant of Rs 22,000 crore to 3 state-owned gasoline retailers to cowl for the losses they incurred on promoting home cooking fuel LPG under price within the final two years, I&B Minister Anurag Thakur mentioned on Wednesday.
The Union Cabinet headed by Prime Minister Narendra Modi at a gathering on Wednesday, authorized the one-time grant to 3 oil advertising corporations – Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), Thakur instructed a information briefing.
The grant will likely be for overlaying the losses they incurred on promoting LPG under price to shoppers from June 2020 to June 2022.
The three companies promote home LPG at government-regulated costs to shoppers.
Between June 2020 to June 2022, the worldwide costs of LPG soared by round 300 per cent.
However, to insulate shoppers from fluctuations in worldwide LPG costs, the price enhance was not totally handed on to shoppers of home LPG, an official assertion mentioned.
Accordingly, home LPG costs have risen by solely 72 per cent throughout this era, it mentioned including this led to vital losses for the three companies.
“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 mentioned.
The Union Cabinet authorized a one-time grant amounting to Rs 22,000 crore to the three oil advertising corporations (OMCs). “This decision will help the PSU OMCs to continue their commitment to the Atmanirbhar Bharat Abhiyaan, ensuring unhindered domestic LPG supplies and also supporting the procurement of Make in India products.”
