Government Shields Consumers: Modi's Rs 30,000 Crore Relief for Oil Companies

In a strategic move to stabilize LPG prices amid global market fluctuations, the Union Cabinet, under the leadership of Prime Minister Narendra Modi, has sanctioned a compensation of Rs 30,000 crore to be disbursed to oil companies in twelve installments. This decision aims to shield consumers from rising international costs.

Notably, despite a significant 63% hike in the Saudi Contract Price, Indian consumers remain insulated from price surges, ensuring affordable access to LPG. This government intervention underscores its dedication to maintaining the financial viability of Oil Marketing Companies (OMCs), which continue facing substantial losses.

The compensation package is set to bolster the financial stability of OMCs, enabling them to manage procurement, service debt, and sustain capital expenditures. This initiative, geared towards enhancing energy accessibility and supporting flagship programs, affirms the government's promise to provide clean and affordable cooking fuel to millions of households.

(With inputs from agencies.)