According to OMC officials, the three companies’ current excellent financial standing should allow them to absorb the impact quite easily, since they have the headroom needed to accept the price reduction.
According to well-placed government sources, the public sector oil marketing companies (OMCs)—Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation—will bear the financial brunt of the Rs 100 per cylinder cooking gas price cut announced on Friday, and the Centre does not intend to make up for it.
As announced by Prime Minister Narendra Modi on Friday, the OMCs on Saturday dropped the price of liquefied petroleum gas (LPG) for all residential LPG consumers by Rs 100 every 14.2-kg cylinder. This was in keeping with the declaration made by Modi on Friday honouring International Women’s Day. Just a few days before the anticipated announcement of the 2024 Lok Sabha elections, the government has slashed prices, which will probably help about 33 crore Indian households.
