India Allocates $3.4 Billion for Cooking Gas Subsidy Compensation

In a bold move to shield its citizens from fluctuating global gas prices, India has approved a hefty compensation package of 300 billion rupees (approximately $3.4 billion) for state-owned oil marketing companies. Announced by Information and Broadcasting Minister Ashwini Vaishnaw on Friday, the compensation aims to offset the losses these companies have faced due to the subsidized pricing of cooking gas.

The financial relief, greenlit by Prime Minister Narendra Modi's cabinet, will be disbursed to Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp over a series of 12 tranches. This support will enable these state-run entities to maintain their capacity for crude procurement, debt servicing, and capital expenses, all crucial for continued operations in the face of geopolitical pressures.

Further underscoring its commitment to alleviating economic pressures on its populace, the government has also earmarked an additional 120.6 billion rupees to provide subsidized cooking gas connections to women from nearly 100 million impoverished households. This strategic financial intervention aims to insulate middle-class families from any adverse fallout related to global gas price volatilities.

(With inputs from agencies.)