The Union Cabinet on Friday, August 8, cleared a Rs 30,000 crore compensation package for state-run oil marketing companies to ensure domestic LPG price stability.
The funds will be disbursed in 12 monthly instalments to Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL).
Union Minister Ashwini Vaishnaw said the measure is aimed at protecting households from global fuel price fluctuations while sustaining the companies’ operational viability. The assistance will also support procurement costs, loan repayments, and uninterrupted LPG supply under welfare schemes such as the Pradhan Mantri Ujjwala Yojana.
“To ensure that the LPG gas is affordable for the middle class, a subsidy of Rs 30,000 crore has been approved. In present geopolitics, gas prices fluctuate and to take care of that, the subsidy is given,” the Union Minister said.
The move comes amid volatile international energy markets, with the government reaffirming its commitment to affordable and accessible clean cooking fuel nationwide.
