The government approved compensation for government OMCs.
LPG prices have been seen in the international market for some time, especially during 2024-25 prices have remained at high levels. Due to this, oil marketing companies have suffered a huge losses in providing gas at cheap rates to domestic consumers.
The central government has decided to assist the public sector oil marketing companies (OMC) to compensate the damage on the supply of LPG cylinders. The government says that keeping in mind the current global situation and the uncertainty of the energy market, this assistance became very important.
OMCs will get help of Rs 30,000 crore
Union Minister Ashwini Vaishnav gave information about this decision on Friday. He told that government OMCs will be given budgetary assistance of Rs 30,000 crore. This assistance is being given to those companies that provide LPG gas cylinders to consumers across the country at concessional rates.
Which companies will benefit?
This financial assistance will be provided to Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL). These three companies are the major oil marketing institutions of the country, which ensure domestic LPG access to consumers. The government has clarified that this compensation will be distributed under the supervision of the Ministry of Petroleum and Natural Gas and this amount will be given in 12 installments.
What will be the benefit of compensation?
This financial assistance will help oil companies to procure crude oil and LPG, loan payment and maintain their necessary investment. This will also ensure that uninterrupted supply of LPG remains in every corner of the country. Also, this decision will also help consumers to reduce the burden directly.
Pradhan Mantri Ujjwala scheme also got a boost
Taking another important decision, the government has approved an additional assistance of Rs 12,060 crore for 2025-26 under the Pradhan Mantri Ujjwala Yojana (PMUY). This amount will be used to give a subsidy of Rs 300 on every cylinder to Ujjwala beneficiaries. This will benefit more than 10.33 crore families in the country, including most rural and poor families.
The objective of the Pradhan Mantri Ujjwala Yojana launched in 2016 is to provide clean fuel to women of poor families. By 1 July 2025, the number of Ujjwala beneficiaries has reached 10.33 crore.