Rising import costs offset by lower global LPG rates in Q2 2027

India imports roughly 60 percent of its LPG requirements. When the West Asia supply chain faltered, the country diversified its sources, purchasing more from the United States and other regions. This diversification drove up the landed cost for OMCs.

To cushion the impact, the government raised the price of a 14.2 kg domestic cylinder by ₹89 during Q1 FY2026‑27. The move aimed to share a portion of the under‑recovery burden with consumers while preserving the financial health of the marketing firms.

Global LPG prices, however, began to ease from July onward. The Saudi CP fell back to $592 per metric ton in July and $632 in August, narrowing the cost gap between imports and retail sales. This price moderation is projected to trim the LPG shortfall by around 40 percent in the upcoming quarter.

If the trend holds, OMCs could see a modest rebound in profitability, even as they continue to navigate volatile international markets.