Commercial LPG Prices Increase by 10%, ATF Costs for Domestic Carriers Rise by Approximately 9%

The government has announced that oil marketing companies (OMCs) are currently experiencing an under-recovery of ₹380 per domestic cooking gas cylinder. This under-recovery indicates the financial losses OMCs incur when they sell cooking gas at a price lower than their production and supply costs.

In recent months, the pricing of liquefied petroleum gas (LPG) cylinders has been a topic of significant discussion, especially amid rising global crude oil prices. To address these discrepancies and ensure stability in the domestic market, the government is examining various options, including potential adjustments to subsidy allocations and pricing mechanisms.

The Indian cooking gas market is heavily influenced by international oil prices, and fluctuations can significantly impact OMCs profitability. Industry analysts suggest that sustained under-recovery could lead to future price hikes in domestic cooking gas, which may affect consumers across the country.