New Delhi:- The government can give a subsidy of Rs 35,000 crore to public sector Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited in this financial year to compensate for the losses incurred on selling fuel.
According to the ET report, all three fuel retailers have kept the price of domestic LPG unchanged at Rs 803 per 14.2 kg cylinder from March 2024, despite the increase in the cost of raw materials. This led to under-recovery on LPG sales and resulted in a sharp decline in their income in April-September.
The industry is expected to suffer a total loss of Rs 40,500 crore on the sale of LPG in the current financial year. Sources having knowledge of the matter said that in comparison, the government will provide a total of Rs 35,000 crore in two financial years. Sources said state-owned fuel retailers are under-recovering about Rs 240 in selling a 14.2 kg cylinder to domestic households at the current price of Rs 803.
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 provision for subsidy is likely to be made in the Union Budget 2025-26, which Finance Minister Nirmala Sitharaman will present on February 1.
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