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Cooking Gas Loss Narrows: Relief for Indian Fuel Retailers
10 Aug
Summary
- Cooking gas revenue loss per cylinder reduced to $1.97 in August.
- Household cooking gas loss was ₹500 per cylinder in July.
- Pending dues to state retailers for LPG exceed ₹59,000 crore.
The revenue shortfall experienced by India's state-owned fuel retailers on the sale of cooking gas has significantly decreased. Junior oil minister Suresh Gopi announced that by August, the loss per 14.2-kilogram cylinder of liquefied petroleum gas (LPG) had narrowed to $1.97. This marks a substantial improvement from the previous month, as the minister reported a loss of ₹500 per cylinder in July.
Despite this positive trend, the financial burden on these retailers remains considerable. As of July 31, the total outstanding dues for LPG sales to state retailers surpassed ₹59,000 crore. While the government has disbursed a subsidy of ₹30,000 crore to address some of these outstanding payments for the 2025/26 and 2026/27 financial years, a significant gap persists.
These state-run companies, including Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp, have been selling cooking gas cylinders in Delhi for ₹942 since June 2026. The government's policy involves compensating fuel retailers for sales made below market rates, although this compensation often involves a time lag.
