Cabinet approves ₹30,000 crore LPG subsidy to state-run oil companies

The Cabinet approved ₹30,000 cr LPG subsidy for state-run oil firms to keep prices stable and help them manage rising global gas costs and supply expenses.

Published on: Aug 8, 2025, 18:14:23 IST

By HT News Desk

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The Union Cabinet on Friday approved a ₹30,000 crore LPG subsidy for state-run oil marketing companies, Union I&B minister Ashwini Vaishnaw announced on Friday.

Union Information Broadcasting Minister Ashwini Vaishnaw said, "In the current geopolitical situation, this subsidy will insulate middle-class families and will keep them unaffected." (Sansad TV/ANI Video Grab)

The decision is meant to keep LPG prices affordable for the middle class, he added. He said, “To make LPG affordable, ₹30,000 crore has been approved for subsidy in today's Cabinet meeting. In the current geopolitical situation, this subsidy will insulate middle-class families and will keep them unaffected..."

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According to the petroleum ministry, the amount will be paid in 12 parts to Indian Oil, Bharat Petroleum, and Hindustan Petroleum. The Ministry of Petroleum and Natural Gas will decide how the compensation is shared among the companies. The payment will be made in twelve instalments.

Global LPG prices have stayed high since 2024–25. To protect consumers from price fluctuations, the companies absorbed heavy losses but continued supplying domestic LPG at affordable rates.

According to the government, the compensation will help the companies meet key expenses such as crude and LPG procurement, debt servicing and capital spending, ensuring uninterrupted supply of LPG cylinders to households.

Government said, “This step also underlines the government's commitment to protect consumers from volatility in global energy markets while maintaining the ﬁnancial health of these PSU OMCs.”

₹12,060 cr aid for PM Ujjwala Yojana beneficiaries

The Cabinet also cleared ₹12,060 crore support for PM Ujjwala beneficiaries for 2025-26, a statement said. This includes a ₹300 subsidy per cylinder for eligible users and will cover 10.33 crore households, reaching about 45 crore people across India.

PMUY, launched in 2016, was set up to give deposit-free LPG connections to adult women from poor households across India. As of 1 July 2025, there are around 10.33 crore PMUY connections in the country.

In 2024-25, the total spending under the PM Ujjwala Yojana was ₹52,000 crore.

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