Archive · 22 Jan 2026
HPCL Anticipates Higher LPG Under Recoveries in Q4 FY26
HPCL, a big company that sells cooking gas (LPG) in India, says it will lose more money in the last three months of the financial year 2026.
This is because the price of LPG is going up in the world market, but the company is not increasing the price for people in India.
The company has 55 factories and serves about 100 million people.
The government will give the company some money to help cover these losses.
HPCL expects to lose about ₹120 for each cooking gas cylinder if the prices keep going up.
The company has already received some money from the government to help with these losses.
HPCL expects higher LPG under recoveries in Q4 FY26 due to rising benchmark Saudi contract prices.
Under recovery per cylinder rose from ₹35 in Q2 FY26 to ₹95 in January 2026, expected to reach ₹120 in Q4 FY26.
HPCL has a negative buffer of ₹13,424.11 crore as of December 31, 2025.
The company will receive ₹7,920 crore in compensation for under-recoveries, disbursed in 12 monthly instalments.
International LPG prices increased in FY25, but domestic prices were not raised, resulting in a ₹40,000 crore loss for OMCs.
- Who
- Hindustan Petroleum Corporation (HPCL)
- What
- Expects higher LPG under recoveries in Q4 FY26
- When
- January-March 2026
- Where
- India
- Why
- Due to rise in benchmark Saudi contract price (CP) and elevated international LPG prices
- Company
- Hindustan Petroleum Corporation (HPCL)
- LPG Market Share
- 28%
- LPG Bottling Plants
- 55
- LPG Capacity
- 6.5 million tonnes per annum
- Distributorships
- 6,380
- Consumers Served
- 100 million
- Under Recovery (Q3 FY26)
- ₹503 crore
- Under Recovery per Cylinder (January 2026)
- ₹95
- Expected Under Recovery per Cylinder (Q4 FY26)
- ₹120
- Negative Buffer (December 31, 2025)
- ₹13,424.11 crore
- Compensation Received (Up to March 31, 2026)
- ₹7,920 crore
- Monthly Instalments
- ₹1,320 crore (2 instalments recognized)