OMCs Facing ₹650 Loss Per LPG Cylinder After Recent Price Hike, Says Government

State-run Oil Marketing Companies (OMCs) are losing about ₹650 on every domestic LPG cylinder sold, according to the Ministry of Petroleum and Natural Gas (MoPNG). The figure was shared by Sujata Sharma, Joint Secretary at the ministry, as per PTI news report. 

The losses come at a time when global energy markets remain volatile, increasing the cost of LPG imports for Indian fuel retailers. 

Domestic Cylinder Prices Unchanged 

Despite the reported under-recoveries, the price of the 14.2-kg domestic LPG cylinder has not been revised. The government has continued with existing household LPG rates even as international fuel prices have moved higher. 

News reports citing officials said OMCs continue to bear the difference between the selling price of domestic cylinders and the actual cost of procurement and distribution. 

Commercial LPG Rates Increased 

While household LPG prices were left unchanged, oil marketing companies raised the prices of 19-kg commercial LPG cylinders from June 1. 

The increase was up to ₹53.50 per cylinder in major cities. Commercial cylinders are commonly used by restaurants, hotels, catering businesses, and other establishments. 

Impact Of Global Prices and Rupee Movement 

According to the ministry, higher international gas prices have been a key factor behind the increase in losses. At the same time, the depreciation of the rupee has pushed up the cost of imports. 

India depends on overseas supplies for a significant portion of its LPG requirement. As a result, changes in global benchmark prices and exchange rates have a direct impact on the cost borne by fuel retailers. 

Government Assistance to OMCs 

The Centre has previously provided financial support to OMCs to compensate for losses arising from the sale of domestic LPG.  

Such support has been extended during periods when international fuel prices led to large under-recoveries. 

However, officials indicated that current market conditions continue to put pressure on the finances of state-owned fuel retailers. 

Read More: India Reduces Export Duties on Petrol, Diesel and ATF Effective June 1, 2026, Amid Gulf Region Conflict! 

Conclusion 

The government's latest estimate shows that domestic LPG sales remain loss-making for OMCs. Although commercial LPG prices were increased from June, losses on household cylinders continue amid higher import costs and currency-related pressures. 

For daily market updates and regular stock market news in Hindi, stay tuned to Angel One's share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.