HPCL Management Expects Cylinder Under-Recovery to Rise by ₹120 Per Unit
HPCL management expects cylinder under-recovery to rise by approximately ₹120.00 per unit, as disclosed during a recent conference call. This increase represents additional cost pressure on the company's LPG operations and could impact segment profitability.

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Hindustan Petroleum Corporation Limited management has revealed expectations of rising under-recovery in its LPG cylinder business during a recent conference call with stakeholders.
Financial Impact on LPG Operations
The company's management disclosed that cylinder under-recovery is anticipated to increase by close to ₹120.00 per cylinder. This projection indicates potential financial challenges in the LPG distribution segment.
| Parameter: | Details |
|---|---|
| Expected Under-Recovery Increase: | ₹120.00 per cylinder |
| Business Segment: | LPG Cylinder Operations |
| Source: | Management Conference Call |
Implications for Business Performance
The projected increase in under-recovery represents additional cost pressure on HPCL's LPG operations. Under-recovery typically occurs when the selling price of subsidized products falls below the cost of procurement and distribution, creating a gap that impacts company margins.
This development in the cylinder business could influence the company's overall financial performance in the LPG distribution segment, as higher under-recovery amounts directly affect operational profitability.































