Cabinet approves ₹30,000 crore LPG subsidy to OMCs to ensure affordable cooking gas for middle class: Ashwini Vaishnaw
The move has been taken to ensure affordable LPG for the middle class amid the current geopolitical situation, Vaishnaw said.
'To ensure that the LPG gas is affordable for the middle class, a subsidy of ₹ 30,000 cr has been approved...In present geopolitics, gas prices fluctuate and to take care of that, the subsidy is given,' he said in a briefing after the Cabinet meeting.
The compensation will be paid in 12 tranches to state-owned OMCs including Indian Oil, Bharat Petroleum and Hindustan Petroleum, the Ministry of Petroleum said in a statement on Friday.
It said that international LPG prices continue to remain high.
'However, to insulate consumers from fluctuations in international LPG prices, the increase in cost was not passed on to consumers of domestic LPG which led to significant losses for the three OMCs,' it said.
The Cabinet further approved a ₹ 12,060 crore support for PM Ujjwala beneficiaries for FY 2025-26, a statement said. This will entail a subsidy of ₹ 300 per cylinder to eligible Ujjwala subscribers and will benefit 10.33 crore households and around 45 crore individuals across India.
The Ujjwala Scheme was launched by PM Narendra Modi in 2016.
The Cabinet's decision came days after US President Donald Trump doubled US tariffs on India to 50 per cent — the highest in the world — citing its continued purchase of Russian oil.
PM Modi had earlier this week, without naming Trump, said that the government will do everything to defend its citizens even if it comes at a personal cost.
'This step also underlines the Government's commitment to protect consumers from volatility in global energy markets while maintaining the financial health of these PSU OMCs. It also reaffirms the objective of ensuring the widespread availability of clean cooking fuel to all consumers of domestic LPG, including those under flagship schemes like PM Ujjwala Yojana,' the petroleum ministry said in its statement.
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