New Delhi: Oil companies have got a big relief today like the government. In today's cabinet meeting, the government has decided to give big relief to the oil companies. To give relief from expensive gas, in a meeting chaired by Prime Minister Narendra Modi, a one-time grant of Rs 22 thousand crore has been approved for oil companies.
New Delhi: Oil companies have got a big relief today like the government. In today’s cabinet meeting, the government has decided to give big relief to the oil companies. To give relief from expensive gas, in a meeting chaired by Prime Minister Narendra Modi, a one-time grant of Rs 22 thousand crore has been approved for oil companies. The Union Cabinet approved the one-time grant to three oil marketing companies – Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).
However, the Petroleum Ministry had earlier demanded a subsidy of Rs 30,000 crore. Oil companies are incurring losses on retail sale of LPG and this relief is being given to compensate for this loss. An official statement said, “Between June 2020 and June 2022, the international prices of LPG soared by around 300 per cent. However, to insulate consumers from fluctuations in international LPG prices, the cost increase was not fully passed on to consumers of domestic LPG” .
Union Minister Anurag Thakur said that 11.27 lakh railway employees will be given productivity linked bonus of Rs 1832 crore. This will be a bonus of 78 days and its maximum limit will be Rs 17951. He said that the cabinet has approved the new scheme Pradhan Mantri Vikas Pahal (PM-Divine) for the North Eastern Region for the remaining four years of the 15th Finance Commission from 2022-23 to 2025-26. Accordingly, domestic LPG prices have risen by only 72 per cent during this period, it said adding this led to significant losses for the three firms.
Let us tell you that the oil companies are currently suffering from three sides. The pressure is increasing due to the rise in gas prices. On the other hand, keeping retail prices stable, the deficit is increasing. Also, due to the record depreciation of the rupee against the dollar, companies have to pay more import bills than before.
Oil marketing companies have suffered heavy losses this year due to the depreciation of the rupee and the rise in gas prices. Between June 2020 and June 2022, LPG prices have increased by 300 percent. It is believed that they may take a long time to recover this loss. In such a situation, today the decision of the cabinet can give big relief to the companies.
Earlier this month, OMCs had cut the price of commercial LPG cylinders by Rs 25.50. After this, the price of 19 kg commercial LPG cylinder in the capital Delhi was reduced from Rs 1885 to Rs 1859.50. Since June this year, the price of commercial LPG cylinders has been cut 6 times so far. Since June, there has been a total reduction of Rs 494.50 per cylinder in the price of commercial cylinder. However, there has been no change in the price of LPG cylinder in October. The price of domestic LPG is at Rs 1053 per cylinder.