NEW DELHI: Oil marketing companies (OMCs) received Rs 30,000 Ccapital infusion from the government in the Budget 2023-24 for the energy transition. As per the Budget document on capital allocation to the petroleum ministry, the government earmarked Rs 30,000 crore as capital support to oil companies, Rs 5,000 crore is meant for strategic storage filling of oil reserves, and Rs 180 crore for direct benefit transfer for LPG consumers.
“Of the Rs 35,000 crore capital expenditure announced, Rs 5,000 crore is for strategic storage filling of oil reserves and Rs 30,000 crore capital support would be for OMCs to take up projects that contribute towards the goals of the energy transition, security, and net-zero carbon emissions target by 2070,” said Finance Minister Niramala Sitharaman.
Meanwhile, the three state-owned oil companies -- Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd -- have reported a combined net loss of Rs 21,201 crore during April-September 2022. The loss would have been higher if the government had not paid Rs 22,000 crore LPG subsidy to the companies. OMCs witnessed losses due to under-recoveries in petrol, diesel and LPG on account of a 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.