Oil marketing companies losing nearly 700 per domestic LPG cylinder, says government

NEW DELHI: Oil selling companies are inactive incurring an under-recovery of astir Rs 700 connected each home LPG cylinder contempt the Rs 29 summation successful the terms of cooking state refills, the authorities said connected Sunday.Despite a planetary surge successful vigor prices pursuing the West Asia struggle and the benchmark Saudi CP rising astir 46% — from $543 a tonne earlier the disruption to $775 a tonne successful May — the authorities said it had moderated the effectual terms paid by home consumers and kept it good beneath levels prevailing successful galore countries. Saudi CP has further accrued to $790 a tonne successful June, it said.Prices of petroleum products successful India are linked to corresponding planetary benchmarks.

The outgo of supplying a home LPG cylinder has risen to much than Rs 1,600, the authorities said.While a 14.2-kg home LPG cylinder successful the superior present costs Rs 942, up from Rs 913, beneficiaries of the Pradhan Mantri Ujjwala Yojana volition wage an effectual Rs 642 per cylinder aft receiving a subsidy of Rs 300 per refill. PMUY beneficiaries, however, volition present person the subsidy connected lone 4 refills a year, down from 9 refills announced past year.

This is the 2nd summation successful home LPG prices since vigor supplies were disrupted by the closure of the Strait of Hormuz owed to the conflict, pursuing a Rs 60-per-cylinder hike successful March. Prices of commercialized LPG are deregulated and person been revised 5 times during this period.Oil retailers person besides raised petrol, diesel and CNG prices 4 times each to partially offset losses arising from higher planetary crude lipid and state prices.The terms of a 19-kg commercialized LPG cylinder, utilized by hotels and businesses, is revised automatically each period arsenic a nonstop pass-through of planetary benchmark rates. It presently costs Rs 3,113.5 successful the capital, oregon astir Rs 164 per kg, portion a home user pays astir Rs 66 per kg aft the latest revision.“Through a play of crisp planetary outgo increases, that load has been absorbed upstream alternatively than passed connected to the consumer,” authorities said successful a statement.

It added that under-recovery was abstracted from the subsidy — the spread betwixt the planetary outgo and the regulated retail terms – which is estimated astatine Rs 60,000 crore successful FY26, up from Rs 41,338 crore successful the erstwhile year.Despite 54% of India’s LPG imports transiting done the Strait of Hormuz earlier the conflict, which remains disrupted, authorities said determination was nary shortage of immoderate petroleum product. Refiners besides ramped up home LPG accumulation by much than 60% — from 32,000 tonnes a time to 52,000 tonnes a time — to offset constrained imports, it said.