OMC’s under recovery on LPG up 5% in August
PSU oil marketing companies' under-recovery on LPG rose roughly 5% month-on-month to more than ₹62,000 crore in August 2026. The cumulative under-recovery rose from roughly ₹51,000 crore in June to over ₹62,000 crore last month. Losses stem from selling LPG below international prices, which surged after February 28, 2026 due to the West Asia conflict and closure of the Strait of Hormuz.
Why it matters: This matters for energy security because the conflict-driven disruption of LPG supply through the Strait of Hormuz raises India's import costs and exposes its dependence on a chokepoint.