To compensate for loss on LPG sales during June 20-June 22
BBN Bureau
NEW DELHI/October 12-2022: The Centre has approved the proposal of Ministry of Petroleum & Natural Gas to give one-time grant amounting to Rs22,000 crore (Rs220 billion) to three Public Sector Undertaking Oil Marketing Companies (PSU OMCs) – Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).
The grant was aimed at compensating these oil companies for the loss incurred on LPG sales during June 2020 to June 2022.
An official statement said the approval will help the PSU OMCs to continue with their commitment to the Atmanirbhar Bharat Abhiyaan, ensuring unhindered domestic LPG supplies and also supporting the procurement of Make-in-India products.
Domestic LPG cylinders are supplied at regulated prices to consumers by the public sector Oil Marketing companies namely, IOCL, BPCL and HPCL.
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. Accordingly, domestic LPG prices have raised by only 72 per cent during this period.
This has led to significant losses for these OMCs. The statement said that despite these losses, the three PSU OMCs have ensured continuous supplies of this essential cooking fuel in the country.
