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Union Cabinet Set to Approve ₹30,000 Crore Subsidy to Stabilise LPG Prices

Written by: Aayushi ChaubeyUpdated on: 8 Aug 2025, 8:28 pm IST
The Union Cabinet is likely to approve a ₹30,000 crore subsidy for oil firms to stabilise LPG prices and reduce inflation.
Union Cabinet Set to Approve ₹30,000 Crore Subsidy to Stabilise LPG Prices
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The Union Cabinet is likely to approve a subsidy of nearly ₹30,000 crore for oil marketing companies to help stabilise the prices of Liquefied Petroleum Gas (LPG), according to news reports. The decision is expected to be finalised in a Cabinet meeting today.

Why Is the ₹30,000 Crore Subsidy Needed?

The ₹30,000 crore subsidy aims to support state-run oil companies like Indian Oil CorporationBharat Petroleum Corporation, and Hindustan Petroleum Corporation. These companies currently sell LPG at prices lower than the market rate to keep it affordable for consumers. However, this leads to losses, especially when global crude oil prices rise.

By providing financial support to these companies, the government intends to offset their losses and protect consumers from steep price hikes in cooking gas amid rising inflation and fluctuating international crude oil costs.

How Will This ₹30,000 Crore Subsidy Impact Consumers and Companies?

The subsidy will help maintain domestic LPG prices at a reasonable level, shielding consumers from sudden increases. This is particularly important for households that rely heavily on LPG for cooking.

For oil marketing companies, the subsidy ensures they continue to supply LPG at subsidised rates without incurring heavy financial losses. This move also helps maintain stability in the energy sector.

Read more: Thinking of Buying a ₹15 Lakh SUV? Check Your EMI First.

Conclusion

The proposed ₹30,000 crore subsidy is a significant step by the government to ensure affordable LPG prices for Indian households while supporting oil marketing companies facing losses due to market dynamics. This initiative is expected to provide relief to consumers and promote stability in the energy sector amid ongoing global price fluctuations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Published on: Aug 8, 2025, 2:54 PM IST

Aayushi Chaubey

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