Shares of Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and other oil marketing companies (OMCs) are in focus today as the Union Cabinet is expected to consider a compensation proposal related to LPG sales.
According to ET NOW, the Cabinet is likely to discuss a compensation package of approximately ₹31,000 crore for public sector OMCs. The package is meant to address losses incurred on the sale of domestic LPG cylinders at below-market rates.
Sources cited by the report suggest that the compensation aims to partially offset under-recoveries faced by these companies. The decision, if approved, would apply to losses already absorbed during previous financial periods when OMCs were directed to maintain price stability despite fluctuations in global prices.
The development is being closely tracked by market participants, given its direct financial implications for IOC and BPCL.
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