The Cabinet on Wednesday approved a one-time grant of ₹22,000 crore to state-run oil marketing companies that lost money selling cooking gas below cost, a move aimed at helping the three firms – they incurred a combined net loss of ₹18,500 crore in the first quarter of 2022-23 – improving the health of their profit and loss statements. They are expected to post a higher loss in the second quarter.
Announcing the decision after the Cabinet meeting, Union information and broadcasting minister Anurag Thakur said the one-time grant to the three oil marketing companies (OMCs) is to offset their losses on selling liquefied petroleum gas (LPG) between June 2020 and June 2022. The three OMCs are – Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).
Even as LPG rates jumped over 300% in many countries, public sector oil marketing companies kept the rates of cooking gas low to shield the Indian consumer, he said.
