Page 57 - Policy Economic Report - September 2026

POLICY AND ECONOMIC
OIL & GAS MARKET

deadline was extended several times to give consumers more time: to 31 July, 7 August, 15 August,
23 August, 31 August, 7 September and finally 14 September 2026.

Since October 2023, Oil Marketing Companies (OMCs) have run a nationwide outreach drive. More
than 12 crore SMS and WhatsApp messages have been sent. Distributors and delivery staff have
followed up individually with consumers yet to authenticate. Special camps have been held at
distributorships, high-footfall locations and in rural areas. IVRS prompts during refill booking, mobile
notifications, and campaigns on social media, in newspapers and through other channels have also
been used.

The cost of LPG subsidy
Domestic LPG is sold below cost. The implicit subsidy for September 2026 is around ?210 per 14.2 kg
cylinder; in June 2026 it reached ?721 per cylinder. To keep domestic LPG affordable, the Government
paid OMCs compensation of ?22,000 crore in FY 2022-23 and is paying ?30,000 crore during FY 2025-
26 and FY 2026-27. Even after this, accumulated under-recoveries of public sector OMCs on domestic
LPG exceeded ?62,000 crore as on 31 August 2026. Directing the subsidy only to genuine consumers
is essential to sustaining it.

2. 7th High-Level Meeting of the OPEC-India Energy Dialogue

The Meeting was co-chaired by HE Hardeep Singh Puri, India’s Minister of Petroleum and Natural Gas,
and HE Haitham Al Ghais, OPEC Secretary General.

Discussions focused on oil market stability, energy security and the importance of adequate and
timely investment across the oil industry. Both parties reviewed the short-, medium- and long-term
outlooks, underscoring India's crucial role in global economic expansion and energy demand growth.

In his remarks, HE Hardeep Singh Puri underlined that India and OPEC share a naturally
complementary and mutually beneficial relationship and thanked Secretary General for his
contribution in strengthening this partnership. He emphasized that India values its longstanding
engagement with OPEC and its Member Countries, which has contributed significantly to mutual
understanding and cooperation on key energy issues.

He noted that “As one of the world’s fastest-growing major economies, India will remain an important
driver of global energy demand in the decades ahead. A sustained dialogue between producers and
consumers is essential to support investment, strengthen energy resilience and ensure reliable energy
supplies for global growth and development.”

Appreciating OPEC's efforts towards promoting stability and transparency in global energy markets
during a period marked by geopolitical uncertainties and market volatility, he called on OPEC and India
to work closely in advancing a balanced, stable and predictable global energy market.

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