OMCs to get compensation for ₹30,000 crore LPG under-recovery in FY26

Petroleum Ministry officials say long-term solutions are needed as global LPG prices rise and subsidy burdens on OMCs become increasingly unsustainable

The central government has promised that it will compensate oil marketing companies (OMCs) for the ₹30,000 crore under-recovery they continue to face in the sale of Liquefied Petroleum Gas (LPG) in the ongoing financial year 2025-26 (FY26), officials at two OMCs said.

 

On an industry-wide basis, OMCs are expected to report ₹30,000 crore of under-recovery in FY26, Indian Oil Corporation Ltd (IOCL) officials had said last week. The largest among the three public sector OMCs, IOCL had an under-recovery of ₹19,000 crore for the sale of LPG for FY25. OMCs have been absorbing the price difference between domestic LPG rates