Indian Retailers’ LPG Losses Narrow Sharply in August

India’s state-run fuel retailers are seeing their losses on subsidised domestic LPG sales narrow significantly in August. The revenue loss has fallen to ₹188 per 14.2-kg cooking gas cylinder, down from ₹500 in July, according to junior oil minister Suresh Gopi.

Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp have been selling a domestic LPG cylinder for ₹942 in Delhi since June. The government compensates the companies for selling cooking gas to households below market prices, although these payments are made with a delay.

The government has paid ₹300 billion in subsidies to clear part of the retailers’ LPG dues for 2025/26 and 2026/27. However, outstanding LPG-related dues to state fuel retailers remained above ₹590 billion as of July 31, highlighting the continuing financial burden of subsidised cooking fuel sales.

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