India, June 9 -- The Central Government has extended financial support worth Rs.1.23 lakh crore to state-run Oil Marketing Companies (OMCs) to compensate for under-recoveries arising from the ongoing West Asia crisis, according to official sources.

The support package is aimed at helping public sector fuel retailers absorb the impact of elevated global crude oil prices and supply disruptions triggered by geopolitical tensions in West Asia. The move is intended to ensure that consumers are protected from sharp increases in fuel prices while maintaining the financial stability of oil marketing companies.

Sources said the assistance has been provided to offset losses incurred by OMCs due to the government's decision to shield consumers fro...