LPG At Rs 942, But Who Is Paying The Difference? Govt Reveals Rs 59,000 Crore Burden

The
cumulative
u de – ecove ies
of
the
gove me t-ow ed
oil
ma keti g
compa ies
—
I dia
Oil,
Bha at
Pet oleum
a d
Hi dusta
Pet oleum
—
o
the
sale
of
domestic
LPG
below
the
ma ket
p ice
due
to
the
West
Asia
c isis
have
su passed
Rs
59,000
c o e
as
of
July
31,
the
Pa liame t
was
i fo med
o
Mo day.

he
etail
selli g
p ice
(RSP)
of
domestic
LPG
is
bei g
mai tai ed
at
Rs
942
pe
14.2
kg
cyli de
(Delhi)
si ce
Ju e
2026,
which
ca ied
a
implicit
subsidy
(u de – ecove y)
of
mo e
tha
Rs
700
pe
cyli de
i
Ju e
2026
a d
Rs
500
pe
cyli de
du i g
July
2026,
Mi iste
of
State
fo
Pet oleum
a d
Natu al
Gas
Su esh
Gopi
said
i
a
w itte
eply
to
a
questio
i
the
Rajya
Sabha.

Du i g
August,
the
etail
selli g
p ice
of
a
14.2
kg
cyli de
ca ies
a
implicit
subsidy
of
Rs
188
pe
cyli de ,
the
gove me t
said.

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The
effective
p ice
of
LPG
fo
mo e
tha
10.5
c o e
Ujjwala
be eficia ies
is
Rs
642
pe
cyli de
(up
to
4
efills
pe
yea ),
afte
a
ta geted
subsidy
of
Rs
300
pe
cyli de .

The
gove me t
has
paid
the
oil
ma keti g
compa ies
a
compe satio
of
Rs
22,000
c o e
i
FY23
a d
will
be
payi g
Rs
30,000
c o e
i
FY26
a d
FY27.

“Eve
afte
the
payme t
of
this
compe satio ,
accumulated
u de – ecove ies
of
the
public
secto
oil
compa ies
o
domestic
LPG
we e
mo e
tha
Rs
59,000
c o es
as
of
31
July
2026
itself,”
the
mi iste
said.

I dia
Oil,
Bha at
Pet oleum,
a d
Hi dusta
Pet oleum
have
bee
selli g
domestic
cooki g
gas
below
the
ma ket
p ices,
which
has
led
to
the
pili g
up
of
huge
u de – ecove ies,
afte
the
i te atio al
p ices
of
LPG
su ged
sig ifica tly
followi g
the
West
Asia
wa
a d
closu e
of
the
St ait
of
Ho muz.

Exp essed
as
the
50:50
p opa e-buta e
ble d
used
fo
I dia& squo;s
LPG,
the
Saudi
CP
fo
LPG
stood
at
about
$543
a
to e
i
Feb ua y,
befo e
the
dis uptio .
Followi g
the
closu e
of
Ho muz
i
late
Feb ua y,
the
Ap il
co t act
p ice,
the
fi st
set
afte
the
dis uptio
tighte ed
Mideast
Gulf
expo ts,
ose
to
$775
a
to e,
with
p opa e
at
$750
a d
buta e
at
$800,
a d
has
si ce
edged
up
fu the
to
$790
a
to e
i
Ju e,
as
pe
the
official
data.
The
ble ded
LPG
be chma k
has
thus
ise
by
about
46
pe
ce t
si ce
the
p e-c isis
Feb ua y
level.

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The
mi iste
also
i fo med
the
Pa liame t
that
despite
u p ecede ted
volatility
i
i te atio al
c ude
oil
a d
p oduct
p ices
due
to
co flicts
a d
othe
ext a eous
facto s,
the
i c ease
i
p ices
of
pet ol
a d
diesel
at
etail
outlets
i
I dia
betwee
Ju e
2021
a d
Ju e
2026
has
bee
much
lowe
tha
i
majo
developed
a d
eighbou i g
cou t ies.

Gove me t
data
shows
that
I dia
eco ded
a
8.1
pe
ce t
ise
i
etail
pet ol
p ices
a d
a
11.5
pe
ce t
i c ease
i
diesel
p ices
betwee
Ju e
2021
a d
Ju e
2026.

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