New Delhi, April 9, 2025: Oil marketing companies are expected to reduce their losses on the sale of domestic LPG cylinders to around ₹160 per unit following the recent ₹50 price hike implemented this month, according to a report by ICICI Securities. The hike is likely to ease the financial burden on oil firms that have been grappling with high under-recoveries due to global price fluctuations and government-imposed price controls.
The report highlighted that before the hike, companies were incurring losses of up to ₹210 per cylinder. With the new retail price in effect, the under-recovery has narrowed, offering some relief to the sector. However, despite the improved margin, oil firms are still absorbing significant losses, and analysts suggest a further price revision may be necessary if international fuel prices remain elevated.
