The under recovery on liquefied petroleum gas (LPG) is expected to rise by roughly 13 per cent on a monthly basis to ₹370 per 14.2 kg domestic cylinder in December 2026.
Indian Oil Corporation (IOCL) Director (Finance) Anuj Jain in a post-results analyst call on Saturday said that under recovery on LPG is around ₹309 per domestic cylinder in November 2026 and is likely to hit ₹370 during December.
“The Saudi CP has gone up to $756 per tonne. So as far as my under recovery is concerned, in September 2026 it was ₹184 per cylinder, which went up to ₹229 in October and going forward in the month of November, we see that it would be somewhere in the range of ₹309 per cylinder. In December, it may go to ₹370 per cylinder,” he added.
As of September 30, 2026, IOCL’s cumulative under recovery on LPG was ₹32,505.69 crore.
The other two PSU oil marketing companies, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) reported under recoveries of ₹17,334.40 crore and ₹18,048.82 crore, respectively.
The OMCs are saddled with huge under recoveries on account of selling the cooking fuel–used by more than 33 crore households–at below the prevailing market rates.
IOCL’s September quarter (FY27) net profit more than doubled to around ₹22,503 crore as lower crude oil prices and higher refining margins helped off-set losses from selling petrol, diesel and LPG below market rates.
The country’s largest fuel retailer said that Q2 FY27 profitability was largely driven by temporary decline in crude oil prices from mid-June to mid-August and robust margins from petrochemicals and gas.
“However, profitability in upcoming quarters may be adversely impacted by inventory losses due to potential fall in crude oil prices with normalization of the situation in the Middle East,” it has warned.
Published on October 31, 2026
