Bharat Petroleum Corporation Limited (BPCL) expects to receive a monthly compensation of around ₹633 crore from the government until October to offset losses incurred from selling domestic LPG at prices below market levels, according to a company statement. The oil marketing company said discussions with the Centre are underway regarding the compensation mechanism as it seeks support for rising under-recoveries.
BPCL said it remains confident of government assistance for losses related to domestic LPG, petrol, and diesel sales. The company’s expectation comes amid continued volatility in global energy markets due to geopolitical tensions in West Asia, including disruptions affecting key oil trade routes such as the Strait of Hormuz.
As of June 30, BPCL’s LPG compensation buffer stood at ₹15,804 crore, which includes an adjustment of ₹7,594 crore. The company expects the government to continue its LPG compensation support measures in line with previous practices to help public sector oil marketing companies manage pricing pressures.
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The central government has acknowledged that state-owned oil marketing companies are facing significant financial pressure due to high crude oil prices and rising LPG under-recoveries. Minister of State for Petroleum and Natural Gas Suresh Gopi informed the Lok Sabha on July 23 that global crude prices remain volatile amid ongoing geopolitical uncertainties.
According to the minister, public sector oil marketing companies have suffered substantial losses from the sale of petrol, diesel, and domestic LPG. The government stated that as of June 30, 2026, the total under-recovery faced by PSU oil marketing companies on domestic LPG had crossed ₹51,000 crore.
The government also highlighted that non-Ujjwala consumers received an implied subsidy of more than ₹500 per 14.2-kg LPG cylinder in July. BPCL’s expected compensation support is aimed at reducing the financial impact of these losses and maintaining stability in domestic fuel pricing amid challenging global conditions.
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