NEW DELHI: The Union Cabinet has approved a Rs30,000 crore subsidy for state-run oil marketing companies (OMCs) to offset losses from selling domestic LPG at below-market rates.
The support, to be disbursed in 12 instalments, will be shared among Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL).
Announcing the decision, Union Minister Ashwini Vaishnaw said the move aims to keep LPG affordable for households amid volatile global prices and geopolitical uncertainties.
“To ensure LPG remains affordable for the middle class, a subsidy of Rs30,000 crore has been approved. In present geopolitics, gas prices fluctuate and to address that, the subsidy is given,” he said.
In 2024-25, international LPG prices stayed elevated, but the government refrained from passing on the higher costs to consumers. This left OMCs with losses, though they maintained supplies. The compensation will help them meet crude and LPG procurement costs, repay loans, invest in operations, and sustain nationwide supply.
The measure also reinforces the government’s commitment to expanding LPG access, including through schemes like the Pradhan Mantri Ujjwala Yojana.
