Cabinet may soon take up extending subsidy to BPCL after privatisation

LPG customers of state-owned OMCs with less than Rs 10 lakh annual income get cash subsidy through direct benefit transfer in their bank accounts

The Union Cabinet may soon consider allowing Bharat Petroleum Corporation (BPCL) to receive subsidy for specific petroleum products for a few years after it is privatised to ensure continuity.

The move would help the government in moving ahead with the privatisation process by providing clarity to potential bidders.

As the Department of Investment and Public Asset Management readies the request for proposal of the sale of the oil marketing company, the government will have to provide clarity on the treatment of subsidies to shortlisted bidders, said a senior government official.

The oil ministry has decided to extend the current practise of subsidising LPG