Cabinet approves Rs 30,000 crore subsidy to oil firms for LPG losses

The government has approved the continuation of targeted subsidies for Pradhan Mantri Ujjwala Yojana consumers for the year 2025-26 with the estimated cost of over Rs 12,000 crore. Over 10 crore 33 lakh households have been benefited under the scheme. The government will provide a targeted subsidy of 300 rupees per 14.2 kilogram cylinder for up to nine refills per year. The government has also approved compensation amounting to Rs30,000 crore to the three Public Sector Oil Marketing Companies including IOCL, BPCL and HPCL. Briefing media in New Delhi on Friday about the Cabinet decision, Information and Broadcasting Minister Ashwini Vaishnaw said, the step has been taken for the under-recoveries incurred on sale of domestic LPG. He said, the distribution of the compensation within the OMCs will be done by the Ministry of Petroleum and Natural Gas and the compensation will be paid in twelve tranches. He said, this step underlines the government’s commitment to protect consumers from volatility in global energy markets while maintaining the financial health of oil marketing companies.

#WATCH | Delhi: After the cabinet meeting, Union Minister Ashwini Vaishnaw says, "Pradhan Mantri Ujjwala Yojana is recognised globally for its inclusive growth...The Pradhan Mantri Ujjwala Yojana aims to bring a change in the lives of the public...10.33 crore Ujjwala connections… pic.twitter.com/cuSLv1X4LL

— ANI (@ANI) August 8, 2025

Vaishnaw also informed that the government has given its nod for the budgetary support for Multidisciplinary Education and Research improvement in Technical Education scheme with an outlay of four thousand 200 crore rupees. He said, the objective of the scheme is to improve the quality, equity and governance in technical education. An estimated 275 government and government-aided technical institutions are expected to be selected and supported under the scheme.

The Cabinet approved four new components under the existing central sector scheme of special development packages for Assam and Tripura with a total outlay of Rs 4250 crore . He said, development of Infrastructure and livelihood projects will create employment opportunities resulting in income generation in these states.