Overview

• The Cabinet sanctioned ₹30,000 crore for IOCL, BPCL and HPCL to cover under-recoveries on domestic LPG and set the payout over 12 tranches starting in FY2026.
• Oil marketing companies recorded losses of about ₹41,000 crore on subsidised LPG sales in FY25 as international prices surged but retail rates stayed capped.
• A separate ₹12,060 crore allocation under the Pradhan Mantri Ujjwala Yojana will fund a ₹300 rebate per 14.2 kg cylinder for up to nine refills for 10.33 crore low-income households in FY26.
• The relief measures will be financed through excise duty revenues so that consumers face no additional price burden and OMCs can maintain uninterrupted supply.
• Officials say the interventions underscore the government’s resolve to keep cooking gas affordable and shore up public-sector oil firms’ financial health during energy market volatility.