Public sector oil marketing companies (OMCs) are likely to absorb the Rs 200-per-cylinder cut in cooking gas prices announced by the government and are not expecting to be compensated by the government, at least for the time being, senior executives with the OMCs said. The three companies–Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL)–are still awaiting clarity on whether there will be any compensation at all down the line.
The OMCs on Wednesday slashed the price of liquefied petroleum gas (LPG) cylinders for all domestic LPG consumers by Rs 200 per 14.2-kg cylinder in line with the Centre’s announcement, which the government had termed as a gift on the occasion of Raksha Bandhan and Onam. However, the government has so far not clarified whether or not it plans to foot the bill for this price reduction, which will benefit over 31 crore domestic LPG consumers in the country.
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