Centre to cover cost of ₹200 LPG cylinder price cut, assures Hardeep Singh Puri: Report
Government to bear the cost of ₹200 price decrease on cooking gas cylinders, relieving oil marketing companies of ₹7,500 crore loss.
LPG cylinder news: Minister of Petroleum and Natural Gas, Hardeep Singh Puri stated on 30 August that the government would bear the cost of the promised ₹200 price decrease on household cooking gas cylinders, relieving the oil marketing companies of the impending loss of ₹7,500 crore.
“Puri further noted that OMCs have demonstrated a healthy performance in the first quarter of fiscal 2023, and are projected to display a positive and reassuring performance in the second quarter as well. Though they had initially taken a loss, they recovered later, supported by the Centre, said the minister. This, in turn , insulated the nation's economy as well the consumer ecosystem from every kind of macroeconomic shocks," said moneycontrol in its report.
The minister reportedly stated that India will buy oil at the most affordable price from all suppliers, according to the moneycontrol news report.
"We will buy oil from wherever we can get it as long as it is delivered to our point of importation at our ports at the lowest possible price," he noted, according to moneycontrol.
Since the West implemented sanctions as retaliation for Russia's invasion of Ukraine in 2022, India has been receiving crude oil at reduced prices from Russia, which has emerged as the nation's leading exporter of the commodity. India, which ranks third in the world for both oil imports and consumption, imports more than 80% of its oil.
On Wednesday's trading session, shares of Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd closed in red zone, down over 1% to 2.5%.
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