₹22k crore grant for government oil companies to bridge LPG losses
NEW DELHI: The Centre will pay Rs 22,000 crore as a one-time grant to state-run fuel retailers to compensate them for keeping price of LPG (liquefied petroleum gas) supplied as cooking fuel to households – in check in spite of a surge in the benchmark rates. The proposal was cleared by the Cabinet on Wednesday.
India imports LPG, mostly from Saudi Arabia, to meet about half of the demand. The Saudi contract price, the benchmark followed by the state-run fuel retailers, has risen 300% during this period but LPG refill rates have been raised by 72%, the government said. An LPG refill now costs Rs 1,053 in Delhi, Rs 1,052.50 in Mumbai, Rs 1,079 in Kolkata and Rs 1,068.50 in Chennai. The Centre had stopped subsidy on domestic LPG in June 2020, taking advantage of the oil price crash in the wake of the pandemic.
