New Delhi:
Government Indian Oil Corporation Ltd. (IOC), Petroleum Corporation Ltd. (BPCL) and Hindustan Petroleum Corporation Ltd. LPG subsidy worth Rs 35,000 crore can be given to public sector oil companies like (HPCL). This subsidy is likely to be given to compensate for the loss incurred on selling domestic LPG in the financial year 2024-25. Sources gave this information.
Companies suffered huge losses
Public sector oil companies have kept the price of domestic LPG unchanged at Rs 803 per 14.2 kg cylinder from March 2024, despite the increase in raw material costs. Due to this, they have suffered loss on the sale of LPG and their earnings have decreased in April-September (first half of the current 2024-25 financial year).
Possibility of getting Rs 10,000 crore in the current financial year 2024-25
He said that IOC, BPCL and HPCL are likely to get Rs 10,000 crore during the current financial year 2024-25 and the remaining Rs 25,000 crore in the next financial year.
The government can make provision for this subsidy in the Union Budget 2025-26, which Finance Minister Nirmala Sitharaman will present on February 1.
Government compensated for past losses
Let us tell you that from time to time the government keeps compensating these losses to IOC, BPCL and HPCL. The three companies were given Rs 22,000 crore for compensation for the financial years 2021-22 and 2022-23. However, this was less than the loss of Rs 28,249 crore. According to sources, out of the total loss of Rs 40,500 crore in the current financial year, IOC is expected to suffer a loss of Rs 19,550 crore, HPCL Rs 10,570 crore and BPCL Rs 10,400 crore.
Why are LPG prices stable?
The government controls LPG prices to provide relief to domestic consumers. However, domestic production is not enough to meet the demand, so fuel has to be imported. Companies are incurring losses due to high cost of imported LPG.
Sources said that even during the summer of 2024, international LPG prices remained moderately high. Companies are incurring losses due to this. Prices are likely to remain high during the winter months.
