LPG Subsidy Burden Swells: OMC Losses Cross ₹59,000 Crore
What Happened
State-run oil companies have accumulated over ₹59,000 crore in losses on domestic LPG sales as of July 31, despite receiving ₹52,000 crore in government compensation. Rising global LPG prices, driven by West Asia tensions and disruptions around the Strait of Hormuz, have widened the gap between LPG selling prices and actual costs.
Key Takeaways
India continues to shield households from higher cooking gas prices, but the subsidy cost is mounting. Persistently high global energy prices could further strain government finances and oil marketing companies.