Cabinet approves ₹30,000 crore compensation to oil marketing companies for domestic LPG losses
The Union Cabinet on 8 August 2025 approved ₹30,000 crore as compensation to IOCL, BPCL and HPCL for under-recoveries on the sale of domestic LPG, to be paid in 12 tranches.
Summary
The Union Cabinet approved ₹30,000 crore on 8 August 2025 as compensation to the three public sector oil marketing companies, IOCL, BPCL and HPCL, for under-recoveries incurred on the sale of domestic LPG. The compensation will be paid in twelve tranches, and its distribution among the companies will be done by the Ministry of Petroleum and Natural Gas.
Key facts
- Approved
- 8 Aug 2025, Union Cabinet
- Amount
- ₹30,000 crore
- Beneficiaries
- IOCL, BPCL, HPCL
- Reason
- Under-recoveries on domestic LPG
- Payment
- 12 tranches
- Distribution by
- Ministry of Petroleum and Natural Gas
Practice MCQs 2 questions
How much compensation did the Union Cabinet approve in August 2025 for public sector OMCs' losses on domestic LPG?
Show answer
Correct answer: D — ₹30,000 crore
The Cabinet approved ₹30,000 crore as compensation to IOCL, BPCL and HPCL for under-recoveries on domestic LPG.
In how many tranches will the ₹30,000-crore LPG compensation to oil marketing companies be paid?
Show answer
Correct answer: B — 12
The compensation will be paid in 12 tranches, with distribution among the OMCs done by the Ministry of Petroleum and Natural Gas.