New Delhi, Aug. 11 -- The Government of India (GoI) has approved Rs.30,000 crore in compensation to the three public sector oil marketing companies (IOCL, BPCL, and HPCL) for LPG under-recoveries. This support will help them meet critical requirements such as crude and LPG procurement, debt servicing, and sustaining capital expenditure.

The amount will be paid in 12 tranches, though the government has not clarified the timeframe for disbursement. International LPG prices remained elevated during 2024-25 and continue to be high.

However, to shield consumers from fluctuations in global LPG prices, the increased costs were not passed on to domestic LPG users, resulting in significant losses for the three OMCs. Despite these losses, the com...