Major Relief for Public Sector Oil Firms

In a significant move to support public sector oil companies, the Cabinet has approved a Rs 30,000 crore compensation package. This aims to offset losses incurred from selling domestic LPG below cost, amidst high international prices.

Compensation Details

The package will be disbursed to Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) in 12 tranches. The Ministry of Petroleum and Natural Gas will oversee the fund distribution among these entities.

Ensuring Uninterrupted Supply

Despite financial losses, these companies have maintained a steady supply of domestic LPG at affordable prices. The government's decision not to pass on the increased costs to consumers has been pivotal in shielding them from global price volatility.

Operational Stability

The compensation is crucial for meeting operational needs such as crude and LPG procurement, debt servicing, and capital expenditure. This ensures the uninterrupted supply of LPG across the nation.

Commitment to Consumer Protection

This step underscores the government's dedication to protecting consumers from global energy shocks while ensuring the financial health of public sector oil firms. It also highlights the commitment to providing clean cooking fuel, especially for Pradhan Mantri Ujjwala Yojana beneficiaries.