The government has announced a ₹30,000 crore support package for public sector oil companies to cover their losses from selling LPG at prices lower than the actual cost.
This decision will help Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL). The money will be given in 12 instalments, and the Petroleum Ministry will decide how to divide it among them.
The government explained that domestic LPG prices are kept under control for consumers, even though international prices have stayed high during 2024-25. To protect people from price hikes, the extra costs were not passed on to customers, which caused big losses for these companies.
The funds will help these oil companies with buying crude oil and LPG, paying debts, and investing in operations. This will make sure the LPG supply continues without any break across the country.
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The move is especially important for Pradhan Mantri Ujjwala Yojana beneficiaries, ensuring they keep getting clean cooking fuel at affordable prices. The government said this step shows its commitment to protect people from global energy price shocks while keeping PSU oil companies financially strong.
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