Govt may give Rs 35,000 crore LPG subsidy to IOC, BPCL, HPCL
Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) to make up for losses they incurred on selling the fuel this fiscal, sources said.
ET Year-end Special Reads
Buying a home in 2025? Here's how property market can shape up
18 top stock picks for 2025 from 6 leading brokers
Five big bangs that shook the corporate world in 2024
The three fuel retailers have kept the price of domestic LPG unchanged at Rs 803 per 14.2-kg cylinder since March 2024 despite a rise in input raw material cost. This led to under-recoveries on LPG sales, and the resultant drastic fall in their earnings in the April-September (first half of current 2024-25 fiscal year).
The total under-recovery on LPG sales for the industry in the current fiscal is estimated at about Rs 40,500 crore. Against this, the government is likely to provide Rs 35,000 crore in total spread over two financial years, two sources with knowledge of the matter said.
IOC, BPCL and HPCL are likely to get Rs 10,000 crore during the current 2024-25 fiscal and the remaining Rs 25,000 crore in the next, they said, adding that provision of the subsidy is likely to be made in the Union Budget for 2025-26 that Finance Minister Nirmala Sitharaman will present on February 1.
Sources said there is an under-recovery (or loss) of about Rs 240 per 14.2-kg cylinder that the state-owned fuel retailers sell to domestic households at the current price of Rs 803.
Artificial Intelligence(AI)
Java Programming with ChatGPT:
