On Wednesday, Information and Broadcasting Minister Anurag Thakur informed that the Union cabinet approved a one-time grant of Rs 22,000 crore to three state-owned fuel retailers to cover the losses they suffered on selling domestic cooking gas LPG below cost in the last two years.

Reportedly the decision was taken in a cabinet meeting chaired by PM Narendra Modi on Wednesday. The one-time grant would be given to three oil marketing companies – Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation Ltd (HPCL); these three firms sold domestic LPG at government-regulated prices to consumers between June 2020 to June 2022. The payment will cover the losses they incurred.

The government stated the approval would help the Public Sector Undertaking Oil Marketing Companies (PSU OMCs) to endure their commitment to the “Atmanirbhar Bharat Abhiyaan”, ensuring unrestrained domestic LPG supplies and also upholding the procurement of Make in India products.

Despite the losses, the company has also been holding down diesel and gasoline pump prices and has ensured the continuous supply of essential cooking fuel in the country. Hindustan Petroleum Corp (HPCL), Bharat Petroleum Corp (BPCL), and IOCL, the three state-run OMCs, have reported a combined loss of Rs 18480 crore in the first quarter of the current fiscal year. For over six months, these three firms have not changed their petrol, diesel, and LPG rates, despite the high crude oil prices and weak rupee pushing up the cost of production.