- State-run OMCs incur losses of around Rs 650 per domestic LPG cylinder sold currently
- Losses increased due to rising global gas prices and weaker rupee affecting import costs
- Domestic LPG prices remain unchanged to protect households from global energy volatility
State-run Oil Marketing Companies (OMCs) are currently incurring losses of around Rs 650 on every domestic LPG cylinder sold, a senior government official said, highlighting the financial strain caused by elevated global energy prices and geopolitical uncertainties.
Speaking at a recent briefing, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas (MoPNG), said OMCs' losses on the sale of domestic LPG are currently around Rs 650 per cylinder.
The losses have widened due to a sharp rise in international gas prices and the impact of a weaker rupee on import costs.
Despite the mounting under-recoveries, domestic cooking gas prices have remained unchanged as the government continues to shield households from volatility in global energy markets.
ALSO READ: Commercial LPG Cylinder Prices Hiked In Delhi And Kolkata By Up To Rs 53.5 — Check Latest Rates
Officials estimate that OMCs are still facing substantial daily losses even after recent fuel price revisions.
Meanwhile, oil marketing companies increased the prices of 19-kg commercial LPG cylinders from June 1. Commercial cylinder rates were raised by up to Rs 53.50 in major cities, while prices of 14.2-kg domestic LPG cylinders remained unchanged.
The government has previously extended financial assistance to OMCs to offset losses incurred on the sale of subsidised domestic LPG.
However, rising international benchmark prices and currency fluctuations continue to exert pressure on the finances of public sector fuel retailers.
ALSO READ : 8th Pay Commission: J&K Union Pushes For Uniform Fitment Factor, Pay Parity With Delhi UT Employees
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
