The government’s one-time grant of Rs 22,000 crore to PSU firms Indian Oil, HPCL and BPCL to compensate for LPG losses solves only a part of the problem, while petrol and diesel under-recoveries pose a bigger worry. The compensation approved by the Union Cabinet this week falls short against an estimated revenue loss of over Rs 48,000 crore on sale of domestic liquified petroleum gas during June 2020-June 2022, Kotak Institutional Equities said in a note. The Cabinet’s muted response for dealing with the under-recoveries of petrol and diesel, revenue loss on which is estimated to be over Rs 80,000 crore in the first half of this fiscal, is another factor raising concern, Kotak analysts said.
