OMC LPG under-recoveries to fall 40% as global prices ease

Companies in India that sell cooking gas buy much of it from other countries.

When the price they pay to buy gas goes up but the price they sell it for stays the same, they lose money.

That loss is called an under-recovery.

A conflict in West Asia made gas prices jump, so these companies lost a lot of money.

Now gas prices around the world are going down again.

Because of that, the companies expect their losses to shrink by about 40% in the next three months.

A key gas price called the Saudi Contract Price went up a lot but has now come down.

India also started buying more gas from the United States instead of West Asia.

People used less cooking gas between March and June, which also helped reduce losses.

Even so, the companies still carry big losses from before, so their profits will stay under pressure.