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India Keeps Fuel Prices Stable as LPG Losses Top ₹59,000 Crore

Compensating state refiners to cap household LPG prices signals growing fiscal strain as New Delhi moves to diversify supplies.

Overview

  • State-run oil marketers had accumulated more than ₹59,000 crore in under-recoveries on domestic LPG sales as of 31 July, the government told Parliament.
  • The implicit loss per 14.2 kg household LPG cylinder fell to about ₹188 in August from roughly ₹500 in July, according to minister Suresh Gopi.
  • New Delhi has paid large compensations to OMCs and budgeted further support for FY2025-26 and FY2026-27 to prevent retail price pass-through to households.
  • Retail petrol and diesel prices in major Indian cities were held unchanged on August 10–11 even as Brent and WTI rose on uncertain IranOman talks over the Strait of Hormuz.
  • The crisis has pushed a shift toward piped natural gas for households and prompted plans to source up to 25% of LPG imports from the United States by 2027, a move that could ease supply risk but raise costs and fiscal pressure.