The central government can give a big gift to the big government oil companies of the country. The government can give a rebate of Rs 35 thousand crore to Indian Oil Corporation Limited, Bharat Petroleum Corporation and Hindustan Petroleum Corporation Limited. According to reports, subsidy can be given to compensate for the losses incurred on selling LPG in the current financial year.
These fuel companies kept the price of LPG cylinder at Rs 803 despite the increase in raw material prices in March 2024. Due to this, these companies suffered huge losses in the April-September half of the current financial year.
A total loss of Rs 40,500 crore is being estimated on the sale of LPG in the current financial year and two people keeping an eye on the matter said that the government will provide a subsidy of Rs 35,000 crore.
According to reports, the government will provide subsidy to these companies in two phases, first Rs 10 thousand crore in the current financial year and the remaining Rs 25 thousand crore will be offered to the companies in the next financial year i.e. 2025-26. This may be announced in the upcoming budget to be presented on 1 February 2025.
From time to time, the government keeps giving subsidy to IOC, BPCL and HPCL for the recovery of these losses. For these losses, the government had earlier given compensation of Rs 22,000 crore in the financial years 2021-22 and 2022-23. The total loss of the companies in both those financial years was Rs 28,249 crore. Out of the estimated under-recovery of Rs 40,500 crore for the current financial year, IOC's loss may be Rs 19,550 crore, HPCL's loss may be Rs 10,570 crore and BPCL's loss may be Rs 10,400 crore.
