Indian fuel retailers absorb LPG losses as city-gas and US sourcing policies reshape costs
Indian Oil, BPCL and HPCL are selling domestic LPG below cost, with estimated August under-recovery of ₹188 per 14.2 kg cylinder. LPG, CNG and PNG prices remain elevated across major cities as India targets more US LPG imports for 2027 and rolls out city-gas connection incentives from September 1.
What happened
Indian Oil Corporation · India’s LPG, CNG and PNG rates remain elevated amid supply disruption concerns. State fuel retailers are selling LPG below cost, while
Key facts
- Domestic 14.2 kg LPG: ₹939.50-₹994 per cylinder
- Commercial 19 kg LPG: ₹2,691.50-₹2,985 per cylinder
- CNG: ₹83.09-₹109 per kg
- PNG: ₹48.40-₹54.70 per SCM
- OMC LPG revenue loss: ₹188 per cylinder in August
- LPG consumption: 2.35 million tonnes, down more than 16% year-on-year
- US term contracts: at least 15% of LPG imports for 2027, potentially rising to 25%
- Domestic LPG production potential: 63,810 tonnes per day
- Domestic production potential represents about 70% of daily consumption
Why this matters
City-gas incentives and India’s planned expansion of US LPG sourcing create partnership and infrastructure opportunities across import terminals, distribution networks and CNG/PNG customer acquisition.