The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a subsidy of Rs 30,000 crore for public sector Oil Marketing Companies (OMCs). The subsidy is meant to compensate the companies for losses on the sale of domestic LPG and will be paid in twelve parts.
The Ministry of Petroleum and Natural Gas will distribute the compensation among the three companies: Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL).
LPG cylinders are sold to consumers at government-regulated prices. In 2024-25, international LPG prices remained high.
However, the government did not pass the increased cost to consumers. As a result, the three companies faced losses. Despite this, they continued supplying LPG cylinders.
