Government compensation to oil marketing companies

Last updated: 11 May 2023

The Indian Union cabinet approved a one-time compensation to public sector oil marketing companies (OMCs) for the losses incurred in selling LPG for cooking below cost. Between June 2020 and June 2022, international prices of LPG rose by around 300% but domestic LPG price rise was limited by the OMCs to 72% to shield consumers from price fluctuations. 

The compensation was split among three public sector undertaking OMCs -  Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL).

Want to know more about this policy ? Learn more