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What TV doesn't, print can't; we deliver.
In a major decision, the Union Cabinet on Wednesday approved a one-time grant of ₹22,000 crores to public sector undertakings (PSU) Oil Marketing Companies (OMCs) for losses in domestic LPG.
In a major decision, the Union Cabinet on Wednesday approved a one-time grant of ₹22,000 crores to public sector undertakings (PSU) Oil Marketing Companies (OMCs) for losses in domestic LPG.
It 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. This move will also help the commoners because the price rise will not fall on them.
Three oil marketing companies (OMCs) – Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) – got the grant to help them tide over losses as a result of under-recoveries as the LPG prices have not been revised as per the global price hikes.
India fulfils 50 per cent of its LPG requirements by importing it from Saudi Arabia. And the prices, in the last two years since, have increased 300 per cent.
Price hikes in India are much lesser. Domestic LPG cylinders are supplied at regulated prices to consumers by these PSU OMCs, Union Minister Anurag Thakur said.
“During the period from June 2020 to June 2022, the international prices of LPG increased by around 300 per cent. However, to insulate consumers from fluctuations in international LPG prices, the cost increase was not fully passed on to consumers of domestic LPG,” the government stated.
It also said that, accordingly, domestic LPG prices have increased by only 72 per cent during this period. “This has led to significant losses for these OMCs,” it added.
In May, the government cut excise duty on petrol and diesel. On October 1, OMCs cut the 19-kg commercial LPG cylinder price by ₹25.5. The LPG cylinder cost in Delhi is ₹1,859. Domestic LPG prices continue to be the same at ₹1,053 per cylinder.
