Under-recovery on domestic LPG narrows to ₹188/cylinder in August
The Indian government has reported a reduction in the implicit subsidy for domestic LPG cylinders, which dropped to ₹188 in August. Despite significant government compensation, state-owned oil companies continue to face substantial accumulated under-recoveries.
Why it matters
This highlights the fiscal burden of energy subsidies on India's public sector oil companies and the government's ongoing efforts to manage domestic fuel pricing.
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.”
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in