LPG Losses Touch ₹1.38 Lakh Crore; Centre Pushes PNG Adoption

India's oil marketing companies (OMCs) are facing significant pressure from rising LPG under-recoveries, with losses estimated at around ₹690 per domestic cylinder sold. Annual LPG under-recoveries are estimated to have reached ₹1.38 lakh crore, while the government's subsidy burden under the PMUY scheme remains around ₹19,000 crore. To reduce the fiscal and subsidy burden, the Centre has urged states to accelerate household migration to piped natural gas (PNG) in areas where city gas distribution networks are already available. Investor Analysis: The government's push towards PNG could act as a structural growth catalyst for city gas distribution companies. Higher household conversions can drive sustained volume growth, improve network utilization, and enhance long-term earnings visibility for PNG providers. The development is positive for city gas distributors and gas infrastructure companies, while prolonged LPG under-recoveries may continue to weigh on OMC profitability unless compensated through subsidies, price revisions, or other government support measures.