The Cabinet on Wednesday permitted a one-time grant of Rs 22,000 crore to a few state-owned gas corporations to cowl losses incurred on promoting LPG beneath price within the final two years.
Three corporations – Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) – promote home LPG to customers at government-regulated costs. The grant might be for the loss incurred on promoting LPG beneath the price to the customers from June 2020 to June 2022.
“This decision will help the PSUs to continue their commitment towards self-reliant India campaign, ensure domestic LPG supply and also help in procurement of Make in India products,” an official assertion mentioned.
The authorities mentioned that the worldwide costs of LPG have elevated by about 300 % from June 2020 to June 2022.
“In order to protect the consumers from the volatility in international LPG prices, the cost escalation has not been fully implemented on the consumers of domestic LPG,” Information and Broadcasting Minister Anurag Thakur informed reporters after the cupboard assembly.
Accordingly, home LPG costs have elevated by solely 72 per cent throughout this era, it mentioned, including that it precipitated important losses to all of the three corporations.
“Despite these losses, the three PSU oil advertising corporations have ensured a steady provide of this important cooking gas within the nation. Hence the federal government has determined to offer a one-time grant for these losses in home LPG.
With inputs from TheIndianEXPRESS
