<ul data-eligibleForWebStory="false"><li>The Indian government is likely to compensate oil marketing companies for under-recoveries on LPG, with the finance ministry working on the details.</li><li>No provision was made in the 2025-26 Union Budget for compensating under-recoveries, but the government raised excise duty on petrol and diesel to generate additional revenue for this purpose.</li><li>The compensation for LPG under-recoveries is expected to come from the additional revenue garnered through the excise duty hike.</li><li>The compensatory funds are likely to be routed through the consolidated fund of India after the proposal is firmed up and approved by the Cabinet.</li></ul>

Govt likely to soon compensate oil firms for LPG losses

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