According to a CNBC TV-18 report, the Union Cabinet approved lump sum payments to state-owned oil marketing companies for liquefied petroleum gas (LPG) at its Oct. 12 meeting.
The government is also considering offering state-run OMCs like Indian Oil Corp compensation for their losses.
The decision will likely be officially announced at today’s Cabinet briefing at 3pm.
According to the report, the Ministry of Finance has approved a cash settlement of Rs22,000 crore.
Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp., the three largest state-run retailers that collectively supply more than 90% of India’s petroleum products, suffered their worst quarterly losses in years due to the absorption of world record crude prices. .
In an effort to slow the rate of inflation, companies have also kept the price of gasoline and diesel at the pumps low since early April.
For the fiscal year ending in March, the government has earmarked Rs 5,800 crore for oil subsidies.
About half of India’s liquefied petroleum gas, which is typically used as cooking fuel, is imported. According to Indian Oil Minister Hardeep Singh Puri, on September 9, the retail price in Delhi rose by 28% while the price of the Saudi contract, the benchmark for LPG imports in India, increased by 303% over the past few years. two previous years.
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