US EditionCabinet Approves ₹30,000 Crore LPG Subsidy to OMCs to Ensure Affordable Cooking Gas for Middle Class: Ashwini Vaishnaw
INDIA, AUG 8 – The subsidy will cover losses from selling LPG below market price and ensure stable supply to households, with payments made in 12 tranches, officials said.
- On August 8, 2025, the Union Cabinet sanctioned a ₹30,000 crore subsidy to three state-owned oil marketing companies to cover their losses from selling LPG domestically at subsidized rates over a 15-month period.
- The subsidy was necessary because high international LPG prices during 2024-25 were not passed to domestic consumers, causing significant losses to these public sector OMCs.
- The government will distribute the compensation in 12 tranches to allow OMCs to meet critical needs, including crude procurement, debt servicing, and capital expenditure.
- Simultaneously, the Cabinet approved a ₹12,000 crore subsidy under PM Ujjwala Yojana for FY 2025-26, benefiting 10.33 crore households with a targeted subsidy of ₹300 per 14.2 kg cylinder for up to nine refills.
- These measures reaffirm the government's commitment to maintain affordable LPG access nationwide, including under the PMUY, while protecting PSU OMCs amid volatile global energy markets.
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15 Articles
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Get latest articles and stories on India at LatestLY. Despite a 63% hike in Saudi CP, the Modi government has kept LPG prices stable, insulating mothers and sisters from the price rise. Oil Marketing Companies (OMCs) have suffered heavy losses to make LPG available to kitchens at nearly half the cost at which it is sold in neighbouring countries. India News | Hardeep Singh Puri Hails Centre's Rs 30000 Crore Compensation to Oil Companies for Stab…
Cabinet Approves Rs 30,000-Crore LPG Subsidy To Compensate Oil Firms For Losses
Cabinet on Friday approved Rs 30,000 crore LPG subsidy to state-run oil companies -- Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum -- to compensate for losses incurred from selling LPG at below cost over the past 15 months.
Cabinet approves Rs 30,000-cr compensation to PSU oil firms for domestic LPG losses - The Statesman
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved compensation amounting to Rs 30,000 crore to three public sector oil marketing companies — IOCL, BPCL, and HPCL — for the under-recoveries incurred on the sale of domestic LPG.
Cabinet approves ₹30,000 cr subsidy to compensate oil firms for LPG losses
Cabinet on Friday approved ₹30,000 crore LPG subsidy to state-run oil companies — Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) — to compensate for losses incurred from selling LPG at below cost over the past 15 months.
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