Cabinet approves ₹30,000 crore as compensation to OMCs for losses in domestic LPG

The Union Cabinet on Friday (August 8, 2025) approved a compensation of ₹30,000 crore to the three public sector Oil Marketing Companies for losses incurred on the sale of domestic LPG.

The compensation will be paid in 12 tranches, Union Minister Ashwini Vaishnaw said at a media conference in New Delhi.

This compensation will allow the OMCs to continue meeting their critical requirements such as crude and LPG procurement, servicing of debt, and sustaining their capital expenditure, thereby ensuring uninterrupted supply of LPG cylinders to households across the country, Mr. Vaishnaw said.

The Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum will be receiving the compensation and the distribution will be done by the Ministry of Petroleum and Natural Gas.

Cabinet approves ₹12,000 cr. under PM Ujjwala Yojana for FY26

Union Cabinet on Friday (August 8, 2025) approved a subsidy of ₹12,000 crore under the Pradhan Mantri Ujjwala Yojana (PMUY) for 2025-26, benefitting 10.33 crore households.

PMUY was launched in May 2016, to provide free LPG connection to adult women from poor households across the country. As on July 1, there are about 10.33 crore PMUY connections in India.

"The Union Cabinet chaired by the Prime Minister Narendra Modi, has approved the targeted subsidy of Rs 300 per 14.2 kg cylinder for up to 9 refills per year (and proportionately pro-rated for 5 kg cylinder) to the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY) during FY 2025-26 at an expenditure of ₹12,000 crore," an official statement said.

India imports about 60% of its LPG requirement.

(With inputs from PTI)