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LPG under-recoveries could balloon to Rs 80000 crore by FY2027 as West Asia disruptions bite
Economy
Published on 4 May 2026
ICRA warns India’s subsidy bill may surge faster than expected
ICRA warns Indian oil companies may face LPG under-recoveries climbing to as much as Rs 80,000 crore by FY2027. Disruptions from West Asia and persistently high global prices are squeezing margins, while fertiliser costs are rising sharply and adding pressure on government subsidies. The knock-on effect could extend to chemical, gas and other downstream sectors next fiscal year.
- LPG under-recoveries could reach up to Rs 80,000 crore by FY2027
- West Asia supply disruptions and high global prices are eroding profitability
- Rising fertiliser costs may force higher government subsidy support
- Downstream sectors like chemicals and gas face margin stress
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times