Government Reports Significant Losses for Oil Marketing Companies on LPG Cylinders
Oil marketing companies losing nearly 700 per domestic LPG cylinder, says government
The Times Of India
Image: The Times Of India
Oil marketing companies are facing a loss of nearly ₹700 on each domestic LPG cylinder, despite a recent price increase. The government highlights the impact of rising global energy prices while maintaining lower consumer prices compared to international rates.
- 01Oil marketing companies incur ₹700 loss per domestic LPG cylinder.
- 02The price of a 14.2-kg domestic LPG cylinder in Delhi is now ₹942, up from ₹913.
- 03Beneficiaries of the Pradhan Mantri Ujjwala Yojana will now receive a subsidy for only four refills per year, down from nine.
- 04The cost of supplying a domestic LPG cylinder has risen to over ₹1,600 due to international price hikes.
- 05Despite disruptions in the Strait of Hormuz, there is no shortage of petroleum products in India.
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The Indian government reported that oil marketing companies are losing nearly ₹700 on each domestic LPG cylinder, even after a price increase of ₹29. The cost of a 14.2-kg domestic LPG cylinder in New Delhi has risen to ₹942, while the actual supply cost exceeds ₹1,600. The increase in global energy prices, particularly following conflicts in West Asia, has led to a significant rise in the Saudi CP price, which has surged from $543 to $790 per tonne. Beneficiaries of the Pradhan Mantri Ujjwala Yojana will now only receive a subsidy for four refills annually, a reduction from nine. The government emphasized that despite the challenges posed by international price fluctuations, there is no shortage of petroleum products in India, as refiners have increased domestic LPG production by over 60%.
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The under-recovery on LPG cylinders could lead to increased prices for consumers if losses continue.
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