Archive · 20 Sep 2026
India's LPG OMC Under-Recovery Rises as Imports Face Disruptions
India’s government-owned oil companies sell cooking gas for less than it costs them to buy.
This difference is called under-recovery.
Their total loss grew to more than ₹62,000 crore in August 2026.
The loss per LPG cylinder was about ₹188 in August and is roughly ₹210 now.
International LPG prices increased after fighting began in West Asia and shipping through the Strait of Hormuz was disrupted.
India imports a large share of the LPG it uses.
India brought in more LPG in August than in July, but less than during the same month a year earlier.
The United States became India’s biggest LPG supplier in August.
However, shipping the gas from the United States became more expensive because the journey is long and ship prices increased.
Under-recovery for PSU oil marketing companies exceeded ₹62,000 crore in August 2026, up roughly 5% from July.
Per-cylinder under-recovery rose from about ₹188 in August to roughly ₹210 in the current month.
India’s LPG imports reached a six-month high of 1.3 million tonnes in August, up about 50% month-on-month but down nearly 33% year-on-year.
The United States supplied about 0.62 million tonnes of LPG to India in August, making it the top supplier.
Longer shipping routes and higher freight costs increased the expense of importing LPG from the United States, while Saudi Arabia’s September propane price also rose.
- Who
- India’s PSU oil marketing companies, LPG suppliers, and consumers are involved.
- What
- The under-recovery on LPG rose to more than ₹62,000 crore in August 2026, with higher sourcing and shipping costs contributing to the increase.
- When
- The figures cover June through August 2026, with the latest per-cylinder estimate referring to the current month; the article was published September 20, 2026.
- Where
- The impact is centered in India, with LPG sourced from the United States, Saudi Arabia, and other suppliers and transported through international shipping routes.
- Why
- LPG costs increased after the West Asia conflict and disruptions near the Strait of Hormuz, while Indian retailers continued selling cooking gas below market rates.
- August cumulative under-recovery
- More than ₹62,000 crore
- August per-cylinder under-recovery
- About ₹188
- Current per-cylinder under-recovery
- Roughly ₹210
- August LPG imports
- 1.3 million tonnes, a six-month high
- Monthly import change
- Up roughly 50% from July
- Annual import change
- Down almost 33% from August 2025
- Top August supplier
- United States, with about 0.62 million tonnes