New Delhi: Public sector oil marketing companies (OMCs) are incurring under-recoveries of Rs 650 on every domestic LPG cylinder and Rs 30 per litre on domestic aviation turbine fuel (ATF), the government said Monday.
“Presently, under-recovery for domestic LPG stands at Rs 650 per cylinder, while under-recovery on domestic ATF stands at Rs 30 per litre,” Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas (MoPNG), said at an inter-ministerial briefing on the West Asia conflict.A 14.2-kg domestic LPG cylinder is currently priced at Rs 913 in Delhi and Rs 912.50 in Mumbai.
Sharma said the government has been compensating OMCs—Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL)—for losses incurred on LPG sales to protect domestic consumers. To cover LPG under-recoveries, the Centre paid Rs 22,000 crore to OMCs in 2023 and Rs 30,000 crore last year.The briefing came on a day the government kept domestic ATF prices unchanged. Domestic airlines will continue to pay Rs 104,927.18 per kilolitre for ATF, the rate that came into effect on 1 April.However, jet fuel prices for international flights were reduced 27 percent. International ATF prices fell by around $400 per kilolitre to about $1,100 per kilolitre.Amid Prime Minister Narendra Modi’s call for citizens to use public transport and carpool wherever possible, Sharma said the government has not observed any significant change in petrol and diesel consumption patterns so far.However, she said domestic LPG demand has witnessed a slight decline due to the government’s efforts to encourage households to shift from LPG to piped natural gas (PNG).Shipping traffic shifts amid West Asia tensions
