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Informist, Wednesday, Apr. 1, 2026

 

NEW DELHI – India's state-run oil marketing companies--Indian Oil Corp. Ltd., Hindustan Petroleum Corp. Ltd., and Bharat Petroleum Corp. Ltd.--are incurring under-recovery of INR 380 per cylinder and cumulative losses are expected to reach around INR 404.84 billion by end of May as New Delhi resists the urge to hike prices of liquefied petroleum gas cylinders used by households amid the ongoing war in West Asia, the Ministry of Petroleum and Natural Gas said in a social media post on Wednesday.

 

"Last year also, out of total losses of Rs 60,000 crore (INR 600 billion), Rs 30,000 crore (INR 300 billion) were absorbed by Oil PSUs and Rs 30,000 crore by Government of India, in order to insulate the Indian citizen from high international LPG prices," the ministry said. Under-recoveries occur when the oil companies experience a revenue shortfall due to the retail selling price of domestic LPG being lower than its actual cost of production or procurement.

 

Additionally, these state-run oil companies are incurring under-recoveries of INR 24.40 per litre on petrol and INR 104.99 per litre on diesel at the retail level as of Wednesday. The government has revised prices of premium petrol variants such as XP95, Power95, and Speed by INR 2 per litre. These premium variants account for less than 5% of the overall fuel volume consumed in India, the ministry said.

 

Prices of crude oil, from which LPG is processed, have shot up in the last month after the US and Israel began aerially attacking Iran, which has subsequently led to the near-shutdown of the Strait of Hormuz by Tehran. Nearly all of India's imported LPG and liquefied natural gas flows through this crucial chokepoint.

 

On Wednesday, the government hiked prices of commercial cylinders by INR 195.50 across major metro cities. Industries and hotels consume less than 10% of the total LPG consumed in India. "April 1 price increase in Commercial cylinder price is due to a 44% surge in the Saudi Contract Price: from $542/MT in March to $780/MT for April, as 20-30% of global LPG supplies are stuck in Strait of Hormuz," the ministry said.

 

Nearly 60% of India's overall LPG needs are met by imports. Prices of the 14.2-kilogram household cylinder and cylinders supplied to users under the Pradhan Mantri Ujjwala Yojana have been left unchanged.  End

 

Reported by Anand JC

Edited by Akul Nishant Akhoury

 

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