State-owned oil companies in deep crisis! A loss of ₹700 is being incurred on every domestic LPG cylinder Government oil companies in huge trouble! Loss of ₹700 on every domestic LPG cylinder

The direct impact of the global energy crisis and the huge rise in the prices of crude oil and gas in the international market is now visible on the balance sheets of Indian oil companies. Many major steps are being taken continuously by the Central Government to keep the domestic energy market stable and to protect the general public from the blow of inflation. Despite this, the financial pressure on public sector oil marketing companies (OMCs) is continuously increasing. According to a recent government report, these companies are currently facing a huge financial loss of about Rs 700 on each domestic LPG cylinder sold.

Heavy pressure increased amid West Asia crisis, financial health of companies affected

Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, shared detailed information on the country’s energy scenario during an inter-ministerial high-level briefing. He said that due to the ongoing fluctuations at the international level and the geopolitical crisis arising especially in West Asia, the cost of import of oil and gas has increased significantly. Since the government is controlling the prices of LPG for common consumers in the domestic market within a certain range, the entire burden of this increase in international prices is being directly borne by the government oil companies, due to which they are incurring a loss of Rs 700 per cylinder.

Delivery of record 1.43 crore cylinders in three days, government’s full emphasis on increasing domestic production

Despite this huge financial loss, the government is working diligently to ensure that there is no shortage of LPG in the country. Joint Secretary Sujata Sharma said that the Ministry has taken several concrete measures to ensure uninterrupted availability of LPG in every corner of the country. Under this, while on one hand domestic gas production has been increased rapidly, on the other hand new safe import routes are being arranged globally so that the gap between demand and supply can be completely bridged. As a result of these efforts of the government, a record 1.43 crore LPG cylinders have been safely distributed across the country in just three days. The Ministry has assured the countrymen that despite the tense developments in West Asia, the supply of crude oil, LPG and natural gas in India remains completely stable and the government has adequate emergency buffer stock of petrol and diesel.

Historic relief to air passengers and airlines, price of aviation fuel (ATF) fixed for next 3 years

In another big and important decision, the government has played a big masterstroke to save the domestic aviation sector from the global crisis. According to the information received, the government has completely locked (fixed) the price of Aviation Turbine Fuel (ATF) used for domestic airlines at Rs 86.32 per liter for a long period of next three years. The main objective of this far-reaching plan is to save Indian airlines from financial bankruptcy due to the huge increase in international air fuel prices due to the West Asia crisis. With this step of the government, the operating expenses of the airlines will remain stable, which will directly benefit the common air passengers and even in this period of international crisis, air tickets will remain within the budget and affordable for them.