BPCL Privatization: The ‘LPG Subsidy’ may end once BPCL is privatised, and a government order becomes a breaker

The plan providing exemption to continue the selling of subsidised LPG (Lpg Subsidy News) may come to an end once Bharat Petroleum Corporation Limited (BPCL) is privatised.

BPCL Privatization: In about 20 years, the government will issue an order limiting the supply of LPG generated in the country to exclusively government-owned oil businesses. This order has turned into a deal-breaker ahead of Bharat Petroleum Corporation Limited’s (BPCL) privatisation proposal to keep subsidised LPG sales going (Lpg Subsidy News). The question now is whether BPCL will continue to provide subsidised gas if it is privatised.

The government sought legal advice.

According to government officials acquainted with the situation, legal advice is now being sought to determine if the allocation of LPG generated by corporations such as ONGC and GAIL to BPCL following privatisation is correct. Let us remind you that BPCL now has over 8.4 crores of residential LPG users. There are 21 million Ujjwala consumers among them. The company’s own oil-refining units’ LPG production is insufficient for this.

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Control Order for LPG

BPCL, like other oil marketing companies, buys LPG from state-owned firms such as ONGC and GAIL (India) Limited, as well as private enterprises such as Reliance Industries Limited. Only government-owned oil marketing businesses are subject to the LPG (Regulation of Supply and Distribution) Order, 2020, also known as the LPG Control Order, 2000 – Provisions for sale of indigenously produced LPG to BPCL by Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited (HPCL).

ONGC and GAIL’s BPCL have been banned.

The rule prohibits private enterprises from purchasing LPG generated by ONGC and GAIL. LPG suppliers in the private sector must rely on imported gas. The Control Order, 2000 was enacted in response to the country’s LPG shortage. This ruling will prevent ONGC and GAIL from selling LPG to BPCL once the company is privatised, according to officials. As a result, the administration is seeking legal advice on the matter.