State-run oil marketing companies (OMCs) in India reported LPG under-recoveries exceeding ₹59,000 crore as of July 31, up from about ₹51,000 crore at the end of June. This increase follows disruptions in LPG supplies caused by the ongoing war in West Asia, which has pushed global cooking gas prices higher, according to livemint.com.
The rise in under-recoveries reflects the impact of the conflict on India’s LPG imports, as the country depends on West Asia for nearly 90% of its cooking gas supply. Domestic LPG prices have risen cumulatively by ₹89 per cylinder since the war began on February 28, 2026, including a ₹29 increase in June. The under-recoveries represent the gap between the cost of imported LPG and the prices at which OMCs sell it domestically, as reported in a written reply in the Rajya Sabha.
This situation underscores the vulnerability of India’s LPG market to geopolitical tensions in West Asia, a key supplier region. The under-recoveries burden PSU oil firms financially, as they absorb the cost difference to shield consumers from steep price hikes. The cumulative increase in under-recoveries from June to July highlights the continuing pressure on OMCs amid global price volatility and supply chain disruptions.
The government and OMCs face ongoing challenges managing LPG subsidies and pricing amid these supply shocks. The latest under-recovery figure of over ₹59,000 crore as of July 31 provides a concrete measure of the fiscal impact on public sector oil companies during the conflict period, as detailed by livemint.com.