Rs 250 billion relief for Indian Oil, BPCL, HPCL? Oil ministry approaches Finance Ministry

• Posted in OilGas
• on February 19, 2025
• No Comments.

Oil marketing companies could soon get a big monetary relief of up to Rs 250 billion soon. The oil ministry is expecting financial support for OMCs like Indian Oil , Bharat Petroleum Corporation, Hindustan Petroleum Corporation in the second supplementary demand for grants for the financial year 2025.
ET NOW has learnt from sources that the oil ministry has reached out to the finance ministry to compensate oil marketing companies once again with additional input. The ministry has sought financial assistance for OMCs to cover the losses incurred on LPG sales.

Financial Relief for OMCs

ET NOW had on Dec 16, 2024, reported about the oil ministry’s proposal to compensate the oil marketing firms. Now, sources have told ET NOW that the government is likely to provide assistance of Rs 200 to Rs 250 billion to cover companies’ losses.

It is worth mentioning here that OMCs are incurring a loss of around Rs 150 on the sale of each domestic LPG cylinder. Moreover, the companies have been facing losses on domestic LPG for the past several months. Notably, IOC has an under-recovery of around Rs 90 billion on LPG sales.

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