Indian Refiners Cut LPG Losses in August
Indian state-controlled oil refiners have seen their losses on LPG retail sales narrow significantly in August compared to July. The government is managing supply chain disruptions caused by conflict in the Middle East and the closure of the Strait of Hormuz.
Why it matters
Energy security and the cost of cooking fuel are critical economic issues for millions of Indian households, directly impacted by geopolitical instability.
The biggest Indian state-controlled refiners that have been selling liquefied petroleum gas LPG on the retail market have seen their losses on these sales narrow so far in August, an Indian energy ministry official said on Monday. Indian Oil Corporation Ltd., Bharat Petroleum Corporation Limited BPCL, and Hindustan Petroleum Corporation Limited HPCL have seen their losses narrow nearly threefold this month compared to July, India's junior oil minister Suresh Gopi told Parliament in a written reply on Monday, carried by Reuters. The revenue loss has now narrowed to $1.97 188 Indian rupees per one household cylinder of LPG, widely used as a cooking fuel in India, down from $5.25 500 rupees in July, the official said. The Indian government compensates fuel retailers for their losses on sales of LPG. This compensation comes with a lag and at below market rates.
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