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

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

The compensation will likely be paid in 12 tranches, Union Minister Ashwini Vaishnaw stated at a media convention in New Delhi.

This compensation will enable the OMCs to proceed assembly their important necessities comparable to crude and LPG procurement, servicing of debt, and sustaining their capital expenditure, thereby making certain uninterrupted provide of LPG cylinders to households throughout the nation, Mr. Vaishnaw stated.

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

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

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

PMUY was launched in May 2016, to offer free LPG connection to grownup ladies from poor households throughout the nation. 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 assertion stated.

India imports about 60% of its LPG requirement.

(With inputs from PTI)