PSU oil retailers’ LPG under-recoveries cross ₹51,000 crore despite government support
Indian Oil, HPCL and BPCL have accumulated more than ₹51,000 crore in domestic LPG under-recoveries as import costs rose amid West Asia disruption while retail cylinder prices remained capped. The government has earmarked ₹52,000 crore in compensation through FY27.
PSU fuel retailers IOCL, HPCL and BPCL accumulated over ₹51,000 crore in domestic LPG under-recoveries despite ₹52,000 crore in government compensation, as West Asia disruptions lifted import costs while household cylinder prices remained capped.
Why this matters
The LPG pressure extends a broader cost pattern at Indian Oil and peers: OMC ethanol procurement reached ₹1.72 lakh crore over three supply years, while IOCL, BPCL and HPCL paid ₹70.2/litre, above estimated petrol cost.
Retail-company signals are accelerating, up +1,082,900% QoQ.