Indian Refiners Cut LPG Losses in August
The biggest Indian state-controlled refiners that have been selling liquefied petroleum gas (LPG) on the retail market have seen their losses on these sales narrow so far in August, an Indian energy ministry official said on Monday. Indian Oil Corporation Ltd., Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) have seen their losses narrow nearly…
Indian state-owned refiners, including Indian Oil Corporation Ltd., Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, experienced a significant reduction in their losses on liquefied petroleum gas (LPG) sales in August, according to an Indian energy ministry official. Losses have narrowed nearly threefold compared to July, with the cost per household cylinder of LPG dropping from $5.25 to $1.97, or 188 Indian rupees, the official told Parliament.
The Indian government compensates fuel retailers for their losses on LPG sales, which come with a delay and below market rates. The supply crunch caused by the war in Iran and the closure of the Strait of Hormuz has prompted India to seek alternative LPG imports, leading to higher costs and longer transit times. In response to the supply crunch, the government has urged local refiners to increase production and redirected LPG supply from industrial users to household consumers.
The government is also pushing for the expansion of city pipeline gas networks to reduce reliance on LPG cylinders.
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