The Narendra Modi government is mulling giving additional subsidies for

Liquefied Petroleum Gas (LPG) to oil marketing companies (OMCs). Already, the government had allocated a subsidy of around Rs 12,000 crore for Ujjwala customers.

CNBC-TV18 learns that the additional LPG subsidy could be as high as Rs 25,000-30,000 crore.

In the last two years, the Saudi contract price (CP) is up by around 300 percent whereas the LPG prices in India are less than one-tenth of that. So under-recoveries have also built in on cooking gas for OMCs.

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