HPCL, BPCL Slide as No LPG Compensation in FY25 Supplementary Demand, Govt Signals Alternative Support

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, , and declined up to 3% after the government excluded LPG compensation from the second supplementary demand for grants. The Petroleum Ministry had sought ₹35,000 crore for FY25 to offset rising under-recoveries, which stood at ₹29,223 crore for the first nine months (9MFY25), with Q3FY25 alone witnessing a sharp 67% increase. Union Minister Hardeep Singh Puri reaffirmed the government’s commitment to compensating OMCs, referencing the ₹22,000 crore relief provided in 2022 against cumulative losses of ₹28,000 crore. While no explicit budgetary provision has been made, Puri indicated that alternative financial arrangements through the Finance Ministry remain on the table. However, with OMCs navigating uncertainty, the market reacted negatively. Follow me for more such updates, Thank You!