New Delhi, March 12: The government has approved a ₹30,000 crore subsidy for public sector oil companies (PSUs) for the fiscal year 2025-26. This funding will support companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum in providing domestic cooking gas (LPG) cylinders at subsidized rates. This information was disclosed in Parliament on Thursday.
Currently, the price of a 14.2 kg domestic LPG cylinder in Delhi is ₹913.
In a written response in the Lok Sabha, Minister of State for Petroleum and Natural Gas, Suresh Gopi, stated that under the Pradhan Mantri Ujjwala Yojana (PMUY), the government offers a targeted subsidy of ₹300 per cylinder to underprivileged consumers. As a result, beneficiaries can access the 14.2 kg LPG cylinder at an effective price of ₹613 in Delhi.
To enhance the availability of LPG in the domestic market, the ministry has directed all domestic oil refineries and petrochemical complexes to utilize C3 and C4 gas streams for LPG production.
The minister confirmed that this LPG production will be exclusively supplied to public sector oil companies. These directives have been issued under the Essential Commodities Act.
Suresh Gopi also mentioned that the government has established strategic crude oil reserves with a capacity of 5.33 million metric tons through a special company named Indian Strategic Petroleum Reserve Limited (ISPRL). These reserves will help mitigate supply chain disruptions in situations like the Iran conflict.
He noted that petrol and diesel prices in the country are determined by market conditions, and public sector oil marketing companies make pricing decisions. However, the government intervenes financially to ease the burden on consumers by adjusting the tax structure when necessary.
He highlighted that in November 2021 and May 2022, the central government reduced the central excise duty on petrol by ₹13 and on diesel by ₹16 per liter in two phases, fully benefiting consumers.
Additionally, in March 2024, oil companies reduced retail prices of petrol and diesel by ₹2 per liter. However, in April 2025, when the excise duty on petrol and diesel was increased by ₹2 per liter, this burden was not passed on to consumers.
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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