Friday 2 December 2022
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EconomyOil PSUs need Rs 22,000 crore from us: Lesson to socialists no...

Oil PSUs need Rs 22,000 crore from us: Lesson to socialists no welfare is free

The Narendra Modi government is turning full-on socialist after earning kudos for the Ujjwala scheme that came to the of poor women who used wood and charcoal as their kitchen fuel, granting Rs 22,000 crore of taxpayers’ money to three oil-marketing PSUs to cover for the losses they incurred on selling domestic cooking gas LPG below cost in the last two years, Information and Broadcasting Minister Anurag Thakur said today. Ironically, while the additional cost incurred by the oil PSUs includes the cushion provided to general consumers who are not beneficiaries of Ujjwala, the Modi government is often criticised for turning LPG prices exorbitant for most citizens.

At a meeting today, the Prime Minister Narendra Modi-led union cabinet approved the one-time grant to three oil marketing companies — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) — Thakur told reporters.

The grant will cover the losses they incurred on selling LPG below cost to consumers from June 2020 to June 2022. The three oil firms sell domestic LPG at government-regulated prices to consumers.

Between June 2020 to June 2022, the international prices of LPG soared by around 300% but the cost increase was not fully passed on to consumers of domestic LPG, an official statement said, in order to insulate consumers from fluctuations in international LPG prices. Accordingly, domestic LPG prices rose by only 72% during this period. This led to significant losses for the three firms.

“Despite these losses, the three PSU OMCs have ensured continuous supplies of this essential cooking fuel in the country. The government has therefore decided to give a one-time grant to the three PSU OMCs for these losses in domestic LPG,” the government said.

“This decision will help the PSU OMCs to continue their commitment to the Atmanirbhar Bharat Abhiyaan, ensuring unhindered domestic LPG supplies and also supporting the procurement of Make in India products.”

—    Based on a PTI story

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