NEW DELHI: The oil marketing companies (OMCs) are set to get Rs. 30,000 crore capital from the government to make up their losses. According to the budget documents 2022-23, the government allocated Rs 30,000 crore as capital support to oil companies. For Direct Benefit Transfer for LPG consumers (DBTL), the budget provides Rs 180 crore.
The three state-owned oil companies ~ Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have reported a combined net loss of Rs 21,201 crore during April-September.
The loss would have been higher if the government had not paid Rs 22,000 LPG subsidy to the companies.
OMCs witnessed losses due to under-recoveries in petrol, diesel and LPG on account of record-high crude oil prices largely due to geopolitical tensions and the freezing of retail prices of auto fuels. However, this quarter these companies are expected to post profits.
“Prices of petrol and diesel have not been increased by PSU OMCs since April 6, 2022, despite record high international prices. As a result, against the combined PBT of Rs 28,360 crore in H1 FY22, the three OMCs-IOCL, BPCL and HPCL-have booked a combined loss of Rs 27,276 crore in H1 FY23,” said petroleum minister Hardeep Singh Puri in Lok Sabha in the winter session of 2022.