(ET)
The petroleum and natural gas ministry is planning to push for an allocation of ₹44,000 crore to compensate state-run oil companies for the losses they have been incurring by selling domestic cooking gas at below-market rates, said people aware of the matter.
The amount would go towards offsetting oil marketing companies’ losses on the sale of cooking gas in 2021-22 and 2022-23 as well as providing subsidies to Ujjwala customers this year, said the people. The proposal is likely to be finalised shortly and sent to the finance ministry, they said.
The government had stopped giving subsidies on cooking gas since the beginning of the Covid-19 pandemic in 2020 but continued to provide a marginal amount of ₹10-20 with every refill on account of freight support to customers located in areas far away from depots. Recently, the government announced the resumption of a subsidy of Rs 200 per cylinder for Ujjwala customers. Domestic cooking gas prices are up 77% in two years on a combination of higher international rates and absence of subsidies.
