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 gasoline LPG beneath 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, authorised the one-time grant to 3 oil advertising firms – Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), Thakur informed a information briefing.
The grant shall be for overlaying the losses they incurred on promoting LPG beneath price to customers from June 2020 to June 2022.
The three corporations promote home LPG at government-regulated costs to customers.
Between June 2020 to June 2022, the worldwide costs of LPG soared by round 300 per cent.
However, to insulate customers from fluctuations in worldwide LPG costs, the associated fee improve was not absolutely handed on to customers 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 important losses for the three corporations.
“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 authorised a one-time grant amounting to Rs 22,000 crore to the three oil advertising firms (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.”
