New Delhi: The Center will pay Rs 22,000 crore as a one-time grant to fuel retailers run by the government, to compensate them for keeping the price. kitchen gas ,kitchen gas) as supplied cooking fuel For homes – in check despite an increase in benchmark rates. On Wednesday, the cabinet approved this proposal.
India mostly imports LPG from Saudi Arabia to meet almost half the demand. Saudi contract prices, the benchmark followed by government fuel retailers, have risen 300% during the period but LPG refill rates The government said there has been an increase of 72%. The cost of an LPG refill is now Rs 1,053 in Delhi, Rs 1,052.50 in Mumbai, Rs 1,079 in Kolkata and Rs 1,068.50 in Chennai. Taking advantage of the fall in the price of oil in the wake of the pandemic, the Center stopped the subsidy on domestic LPG in June 2020.
Indian Oil, Bharat Petroleum, and Hindustan Petroleum – the three retailers that supply domestic LPG to households – had a combined loss of over Rs 18,480 crore in the April-June quarter. While the majority of this loss came from the moratorium on revision in prices of petrol and diesel, under-recoveries on LPG contributed a major part.
Compensation to retailers is similar to the similar burden-sharing adopted by previous governments, where one-third of retail losses were borne by oil producers through rebates to refiners, while the government subsidized to cover another third. and shared by the consumer. Comfort in slight increase in prices.
In the current system, the government has slapped unexpected tax on oil and domestically produced gas and is using mop-ups to provide relief to retailers.
India mostly imports LPG from Saudi Arabia to meet almost half the demand. Saudi contract prices, the benchmark followed by government fuel retailers, have risen 300% during the period but LPG refill rates The government said there has been an increase of 72%. The cost of an LPG refill is now Rs 1,053 in Delhi, Rs 1,052.50 in Mumbai, Rs 1,079 in Kolkata and Rs 1,068.50 in Chennai. Taking advantage of the fall in the price of oil in the wake of the pandemic, the Center stopped the subsidy on domestic LPG in June 2020.
Indian Oil, Bharat Petroleum, and Hindustan Petroleum – the three retailers that supply domestic LPG to households – had a combined loss of over Rs 18,480 crore in the April-June quarter. While the majority of this loss came from the moratorium on revision in prices of petrol and diesel, under-recoveries on LPG contributed a major part.
Compensation to retailers is similar to the similar burden-sharing adopted by previous governments, where one-third of retail losses were borne by oil producers through rebates to refiners, while the government subsidized to cover another third. and shared by the consumer. Comfort in slight increase in prices.
In the current system, the government has slapped unexpected tax on oil and domestically produced gas and is using mop-ups to provide relief to retailers.