OMCs Report ₹650 Under-Recovery Per LPG Cylinder as Rupee Weakens
OMCs face ₹650 loss per LPG cylinder due to global price rise.
State-run Oil Marketing Companies (OMCs) in India are currently incurring losses of around ₹650 per domestic LPG cylinder, according to a senior official from the Ministry of Petroleum and Natural Gas (MoPNG). The disclosure highlights ongoing financial pressure on public sector fuel retailers due to elevated global energy prices and currency fluctuations impacting import costs.
Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, stated that the under-recovery on each 14.2-kg domestic LPG cylinder has widened significantly in recent months. She attributed the losses primarily to rising international liquefied petroleum gas (LPG) prices and the depreciation of the Indian rupee, which has increased the cost of imports for oil marketing companies.
Despite these mounting losses, the government has kept domestic cooking gas prices unchanged to protect households from volatility in global energy markets. Officials said that while OMCs are absorbing substantial under-recoveries, the policy decision prioritises consumer stability and aims to shield families from sudden increases in essential fuel costs.
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At the same time, oil marketing companies have revised prices for 19-kg commercial LPG cylinders from June 1, increasing rates by up to ₹53.50 in major cities. However, the price of domestic LPG cylinders has remained stable, maintaining a clear distinction between subsidised household fuel and commercial usage, which is more directly linked to market fluctuations.
The government has previously provided financial support to OMCs to offset losses arising from subsidised domestic LPG sales. However, officials acknowledged that continued pressure from higher global benchmark prices and exchange rate volatility has made it increasingly difficult to fully balance under-recoveries through periodic adjustments.
Industry observers note that sustained losses of this scale could impact the financial performance of state-run fuel companies unless global prices stabilise or further government support is extended. For now, authorities continue to monitor the situation while maintaining a focus on keeping household energy costs steady.
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