- Indian oil marketing companies' domestic LPG under recoveries rose to Rs 62,000 crore in August 2026
- Government paid Rs 22,000 crore compensation in FY 2022-23 and Rs 30,000 crore in FY 2025-27
- Mandatory Aadhaar Biometric Authentication for subsidised LPG starts from October 1, 2026
Indian oil marketing companies' domestic LPG under recoveries crossed Rs 62,000 crore in August 2026, up from Rs 59,000 crore in July, the Ministry of Petroleum and Natural Gas said on Saturday.
Under recoveries surged even as government paid OMCs compensation of Rs 22,000 crore in FY 2022-23 and is paying Rs 30,000 crore during FY 2025-26 and FY 2026-27 with the aim to keep domestic LPG affordable. In this context, directing the subsidy only to genuine consumers is essential to sustaining it, the ministry said.
On Saturday, government announced mandatory Aadhaar Biometric Authentication (BAA) for subsidised LPG refills from October 1, 2026, with the aim to prevent diversion of subsidised domestic cylinders for commercial and industrial use, remove duplicate and ineligible connections. The implicit subsidy for September is around Rs 210 per 14.2 kg cylinder in June it reached Rs 721 per cylinder.
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ALSO READ: OMCs' LPG Under-Recovery Crosses Rs 59,000 Crore Despite Rs 52,000 Crore Govt Payout
In July, OMCs' LPG under-recovery has surged past Rs 59,000 crore, while the Centre provided or approved compensation of around Rs 52,000 crore to cushion the impact, the government said in a Rajya Sabha last month.
The sharp increase in LPG costs comes amid elevated global energy prices following the escalation of tensions in West Asia and disruptions linked to the Strait of Hormuz, putting pressure on the economics of subsidised domestic cooking gas.
According to data shared by the government in a Rajya Sabha, domestic LPG continues to be sold below its cost to consumers, with the gap being absorbed by oil marketing companies and partly offset through government compensation.
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