The Government supported Oil Marketing Companies with Rs 1.23 lakh crore, including excise duty for the initial 78 days, to insulate consumers from price hike in petrol and diesel because of global prices of crude oil, during the West Asia crisis, sources told Timesnownews.com. The step was to ensure that the people wouldn’t feel the heat of the West Asia war’s impact on prices.
Additionally, the Finance Ministry has provisioned for 1.77 crores in fertiliser in the 2026-2027 budget. However, as the rate is increasing, the fertilisers department demands to double the allocation, added the source. The rate of fertilisers to a farmer is still Rs 300 a bag, whereas it was Rs 3000 for the government, which has now gone up to Rs 4500 per bag due to the West Asia war. Fertiliser suppliers’ pool is narrowing as the prices are going up.
Reduced Capacity Under Pradhan Mantri Ujjwala Yojana
The development comes at a time when the government is facing increasing pressure from rising energy and subsidy expenditures across multiple sectors. Earlier this week, the Centre announced a reduction in the annual quota of subsidised LPG cylinders for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY), lowering the entitlement from nine cylinders to four. The government said the decision reflects average household consumption patterns.
When the scheme was launched in the year 2016, eligible households were entitled to 12 subsidised 14.2-kg LPG cylinders each year. The allocation was subsequently reduced to nine cylinders and has now been further scaled back to four.
Officials have attributed the move in part to a sharp increase in import costs. The price of LPG imports, which are benchmarked to the Saudi Contract Price (CP), has risen by nearly 46 per cent since February amid disruptions affecting shipping routes around the Strait of Hormuz.
