The Union Cabinet has approved one-time compensation of Rs 22,000 crore to state-run oil marketing companies for liquefied petroleum gas (LPG) cooking gas, Union minister Anurag Thakur said on Wednesday. The finance ministry has agreed to the cash payout.
Thakur said, “LPG prices are increasing across the world. One-time grant of Rs 22,000 crore has been given to OMCs so that the burden of rising prices does not fall on common people.”
State-run fuel retailers – Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp – together supply more than 90 percent of India’s petroleum fuels. These three OMCs had to suffer the worst quarterly losses in years as the firms absorbed record international crude prices.
Oil marketing companies cut the 19-kg commercial LPG cylinder price by Rs 25.5 on On October 1. The cylinder now costs Rs 1,859 in Delhi. There was, however, no change in domestic LPG cylinder prices and it continues to be sold at Rs 1,053 per cylinder in Delhi.
