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This is a retroactive fiscal compensation package, not a subsidy scheme announced in advance: the government held domestic LPG cylinder prices flat through 2024-25 despite rising international LPG benchmarks, and the three state-owned OMCs absorbed the under-recovery on every cylinder sold. The ₹30,000 crore payout backfills that gap after the fact, paid out in twelve tranches administered by the Ministry of Petroleum and Natural Gas. The mechanism is structurally similar to the emergency fuel-subsidy activation seen in net-importer energy-security responses (e.g. Philippines EO 110 / UPLIFT) — a demand-side transfer that shields retail consumers from an international price shock and keeps state energy champions solvent — except here it is a scheduled, budget-line compensation rather than an emergency-powers declaration.
as a politically-sensitive administered price, with periodic ad hoc Cabinet compensation rounds rather than an automatic pass-through formula.
their ongoing refinery expansion and green-hydrogen/biofuel diversification plans.
as a "certainly harmful" state-aid intervention by Global Trade Alert on the grounds that it selectively supports domestic SOEs against a global price benchmark.
international LPG prices stay elevated — no announced pass-through mechanism exists.
compensation) was not independently verified in this filing pass.