New Delhi: The Union Cabinet is expected to approve a significant subsidy package worth nearly Rs 30,000 crore for India’s oil marketing companies (OMCs) in a bid to stabilize domestic LPG prices. According to sources quoted by Business Today, the Cabinet will take up the proposal during a meeting scheduled for 1 PM today. This support is seen as a crucial step to address the rising cost burden faced by OMCs due to elevated international energy prices.
Oil firms under pressure from global price spikes
Over the past several months, oil marketing companies such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum have struggled with heavy losses on domestic LPG sales. These losses stem from the global surge in energy prices, particularly due to geopolitical tensions and supply disruptions. Despite international volatility, retail LPG prices in India have remained largely stable—thanks to government support measures, including previous subsidies.
Rs 30,000 crore package to ensure price stability for consumers
The proposed financial package is expected to ease the financial burden on oil companies and allow them to maintain current LPG prices for consumers without taking losses. Officials familiar with the proposal say this move is aimed not only at protecting consumers from price hikes but also ensuring the sustainability of public sector oil companies.
Expected to be one of the largest direct support schemes in recent years
Though no formal announcement has been made yet, insiders suggest that the Cabinet’s approval is almost guaranteed. Once cleared, this package will represent one of the largest direct financial support measures for the oil sector in recent years, underscoring the government’s commitment to shielding consumers from energy inflation.
More clarity on the final approval and disbursement plan is expected following the Cabinet meeting later in the day.
