New Delhi, August 10, 2026 (Yes Punjab News)
The cumulative under-recoveries of India’s three state-owned oil marketing companies on domestic LPG sales have crossed Rs 59,000 crore, with international prices rising sharply amid the West Asia crisis and disruptions around the Strait of Hormuz.
The figure, covering Indian Oil, Bharat Petroleum and Hindustan Petroleum, stood above Rs 59,000 crore as of July 31, 2026, the Rajya Sabha was informed on Monday.
Minister of State for Petroleum and Natural Gas Suresh Gopi said in a written reply that the retail selling price of a 14.2-kg domestic LPG cylinder in Delhi has been kept at Rs 942 since June.
At this price, the implicit subsidy or under-recovery was more than Rs 700 per cylinder in June and around Rs 500 in July. In August, the implicit subsidy stands at Rs 188 per cylinder, according to the government.
For more than 10.5 crore beneficiaries under the Pradhan Mantri Ujjwala Yojana, the effective price is Rs 642 per cylinder for up to four refills annually after the targeted subsidy of Rs 300 per cylinder.
The government had provided Rs 22,000 crore in compensation to the oil marketing companies in FY23 and is set to provide Rs 30,000 crore in FY26 and FY27. Gopi said the accumulated under-recoveries nevertheless exceeded Rs 59,000 crore by July 31.
The losses have mounted as the three companies continue selling cooking gas below market-linked prices despite a steep rise in international LPG costs following the West Asia conflict and the closure of the Strait of Hormuz.
Official data cited by the government showed that the Saudi Contract Price for the 50:50 propane-butane LPG blend used in India was around $543 per tonne in February, before the disruption. It rose to $775 per tonne in April, with propane at $750 and butane at $800, and reached $790 per tonne in June.
The benchmark therefore increased by about 46 per cent from its February level.
Gopi also informed Parliament that despite volatility in global crude oil and petroleum product prices, India’s retail petrol and diesel prices rose less sharply between June 2021 and June 2026 than those in several major developed and neighbouring countries.
Government data showed an 8.1 per cent increase in petrol prices and an 11.5 per cent rise in diesel prices in India over the period.
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