OMC LPG under-recoveries top ₹62,000 crore as import and freight costs rise
PSU oil marketers’ cumulative LPG under-recovery exceeded ₹62,000 crore in August as West Asia disruption lifted dependence on costly US cargoes and shipping. Under-recovery reached ₹210 per cylinder, with elevated Saudi propane prices and Houston-Asia freight pointing to continued margin pressure.
What happened
PSU oil marketing companies (OMCs) · PSU oil marketers’ cumulative LPG under-recovery exceeded ₹62,000 crore as West Asia supply disruption and costly US
Key facts
- ₹62,000 crore cumulative LPG under-recovery in August 2026
- ₹210 under-recovery per LPG cylinder in the current month
- India imported 1.3 million tonnes of LPG in August, up roughly 50% month-on-month
- US supplied 0.62 million tonnes of LPG to India in August
- Saudi September propane contract price: $625 per tonne
What changed
PSU oil marketers’ cumulative LPG under-recovery exceeded ₹62,000 crore as West Asia supply disruption and costly US imports raised sourcing and freight costs. The pressure could persist as Saudi propane prices and Houston-Asia freight remain elevated.
Why this matters
PSU oil marketers should prepare for sustained LPG margin pressure by tightening procurement, hedging freight exposure and accelerating operational efficiency measures as losses reach ₹210 per cylinder.