India’s government approved a 300 billion rupee ($3.4 billion) compensation package for state-owned oil marketing companies to cover losses from providing subsidized cooking gas, as announced by Information and Broadcasting Minister Ashwini Vaishnaw. The funds, approved by Prime Minister Narendra Modi’s cabinet, will be distributed in 12 installments to Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp, according to an official government statement.

Empty Liquefied Petroleum Gas (LPG) cylinders are seen at a gas distribution centre in Dujana village, India, October 7, 2015.

This financial assistance will enable these companies to maintain their crude oil procurement, manage debt obligations, and support ongoing capital investments. The initiative ensures the operational continuity of these state-run firms amidst fluctuating global energy markets.

“As gas prices are influenced by global market dynamics, the subsidy will shield middle-class families from adverse effects,” Vaishnaw said during a press briefing in New Delhi.

Additionally, the government has committed 120.6 billion rupees to a program aimed at providing subsidized cooking gas connections to women in nearly 100 million low-income households. This effort is designed to improve access to clean and affordable cooking fuel for underserved communities across the country.

These measures highlight India’s focus on supporting both its energy sector and its citizens, promoting economic stability while addressing the needs of vulnerable populations in the face of global energy price challenges.