Union Petroleum and Natural Gas Minister Hardeep Singh Puri said that the state-run oil marketing companies (OMCs) are set to receive long-awaited compensation for under-recoveries on subsidised sale of liquefied petroleum gas. While speaking at an event organised by the Institute of Chartered Accountants of India in New Delhi, as quoted by NDTV Profit, Puri affirmed that the finance ministry will release the pending amounts in full.
“Companies will receive the LPG compensation amount,” he said, while adding, “100% certainty that the finance ministry will release the compensation amount for OMCs.”
The Union Minister also highlighted the importance of proper auditing of companies in India, stating that it will boost confidence among foreign investors and contribute to the country’s economic growth.
Puri said that with India’s increasing engagement in global business, through auditing of companies is essential to draw foreign investment.
“As the business interface with the rest of the world grows, the fact that our companies are properly audited and that gives the foreign investors confidence and domestic also,” Union Minister said, speaking to the media on the sidelines of ICAI Foundation Day today in New Delhi.
OMCs have incurred losses due to keeping LPG cylinder prices artificially low in recent years. Despite international LPG prices surging by over 60 per cent in 2023–24, domestic rates remained mostly stable, especially for beneficiaries of the PM Ujjwala Yojana. According to
Government data, while the market-linked price of an LPG cylinder in Delhi crossed Rs 1,050, PMUY consumers paid an effective rate of just Rs 503.
The subsidy burden, intended to protect consumers from global price fluctuations, had put pressure on the balance sheets of OMCs. Industry experts see the forthcoming compensation as a crucial financial relief that could enhance stability and enable future capital investments.
While the minister did not disclose the exact amount or timeline for the release, the remarks do come as a significant step towards resolving a long-standing concern in the energy sector.
