Govt May Set Up ₹32,000–35,000 Cr Fund to Compensate OMCs for LPG Losses

The government is likely to create a ₹32,000–35,000 crore fund to compensate oil marketing companies (OMCs) for under-recovery on LPG subsidies, using petroleum excise duty collections. The Finance Ministry has reportedly agreed to the proposal, though it's lower than the ₹40,000 crore initially sought by the Petroleum Ministry. The plan is expected to be sent to the Cabinet for approval soon. OMC shares rose slightly on July 10 in response to the news.