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LPG under-recoveries of oil PSUs cross Rs 59,000 crore

LPG under-recoveries of oil PSUs cross Rs 59,000 crore
Oil PSUs’ losses on LPG sales below market price cross Rs 59,000 crore · thehansindia.com

Cooking gas in India is sold by three government-owned companies: Indian Oil, Bharat Petroleum and Hindustan Petroleum.

These companies sell kitchen gas to families for less money than it costs them to buy it.

The world price of gas jumped very high after a war in West Asia and the closing of a very important sea route called the Strait of Hormuz.

Because of this, the three companies lost more than Rs 59,000 crore by July 31, 2026.

The government chooses to keep prices low so that families can afford to cook food.

The money the companies lose is called an "under-recovery" - a bit like when a shop sells something for less than it paid for it.

Families under the Ujjwala scheme get an even bigger discount, paying only Rs 642 per cylinder.

The government gives the companies some money to help cover these losses, but it is not enough to cover everything.

The government also says that petrol and diesel prices in India went up much less than in other countries over the past five years.

Key facts

Total under-recoveries
More than Rs 59,000 crore as of July 31, 2026
Retail price (14.2 kg cylinder, Delhi)
Rs 942 since June 2026
Implicit subsidy per cylinder
Over Rs 700 (June 2026), Rs 500 (July 2026), Rs 188 (August 2026)
Ujjwala beneficiaries
More than 10.5 crore; Rs 642 per cylinder (up to 4 refills per year)
Targeted subsidy (Ujjwala)
Rs 300 per cylinder
Government compensation
Rs 22,000 crore (FY23); Rs 30,000 crore (FY26 and FY27)
Saudi CP for LPG (blended)
$543/tonne (February) to $790/tonne (June), up about 46%
Petrol and diesel price rise (June 2021-June 2026)
Petrol 8.1%, diesel 11.5%

Quotes

Suresh Gopi

Minister of State for Petroleum and Natural Gas

“Even after the payment of this compensation, accumulated under‑recoveries of the public sector oil companies on domestic LPG were more than Rs 59,000 crores as of 31 July 2026 itself.”
thehansindia.com

Sources

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