The Union Cabinet has approved a ₹30,000 crore compensation package for Oil Marketing Companies (OMCs) to offset their losses in supplying subsidized domestic LPG cylinders.
The move comes as part of the government’s ongoing efforts to maintain affordability of cooking gas, especially under the Pradhan Mantri Ujjwala Yojana (PMUY). Launched in May 2016, PMUY provides free LPG connections to adult women from economically weaker households across India.
As of July 1, the country has more than 10.33 crore PMUY beneficiaries, reflecting the scheme’s wide reach.
The compensation will help OMCs manage the rising input costs and ensure uninterrupted supply of LPG at subsidized rates, especially for poor households. The decision is expected to ease financial stress on fuel companies and strengthen the government’s commitment to clean cooking fuel access for all.
