InvestorQ : Is the government giving compensation to OMCs?
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Is the government giving compensation to OMCs?

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1 month ago
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The Union Cabinet has approved one-time grant of Rs22,000 crore as compensation for the 3 PSU oil marketing companies (OMCs). This is to help IOCL, BPCL and HPCL tide over the sustained losses in domestic LPG supply at below cost. Global prices of LPG are up 300% in last 1 year, but government tempered the rise in LPG prices, due to its social and political implications. In addition, the 3 OMCs incurred fairly large losses on petrol and diesel as selling price failed to cover costs. In June quarter, combined losses were Rs18,480 crore due to selling oil below landed cost.

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