Under-recovery on domestic LPG narrows to ₹188/cylinder in August

State-owned oil-marketing companies have narrowed their under-recovery on domestic liquified petroleum gas (LPG) in August, hovering at about ₹188 per cylinder, Suresh Gopi, Minister of State in the Union Petroleum Ministry told the Lok Sabha.

In response to a question, Mr. Gopi informed that the implicit subsidy being accorded, in other words, the under-recovery, stood at ₹500 per cylinder in July and more than ₹700 per cylinder in June.

“The RSP of domestic LPG is being maintained at ₹942 per 14.2 KG cylinder [Delhi] since June, which carried an implicit subsidy of more than ₹700 per cylinder in June and ₹500 per cylinder during July,” stated Mr. Gopi, adding, “Even for the month of August 2026, the RSP of 14.2 Kg cylinder carries an implicit subsidy of ₹188 per cylinder.”

Mr. Gopi also told the house of the people that notwithstanding compensation of ₹22,000 crore in FY 2022-23 and ₹30,000 crore in FY 2025-26 and 2026-27 for shielding prices of LPG to domestic households, the accumulated under-recovery of the public sector OMCs scaled to more than ₹59,000 crore as of July 31 this year.