Shares of state-run Oil Marketing Companies (OMCs) – Hindustan Petroleum Corporation Ltd. (HPCL), Bharat Petroleum Corporation Ltd. (BPCL), and Indian Oil Corporation Ltd. (IOC), fell as much as 5% on Saturday, February 1, after the announcements made in the Budget documents with regards to its LPG subsidies.

Budget documents revealed that the LPG subsidy for financial year 2025 was kept at ₹14,700 crore and for financial year 2026, the figure stood at ₹12,100 crore.

For the first nine-months of 2025, the LPG under-recoveries for these Oil Marketing Companies, stood at ₹30,000 crore.

Among these, Indian Oil had under-recoveries of ₹14,325 crore, while BPCL had under-recoveries worth ₹7,200 crore, HPCL, whose shares are down 5% have under-recoveries of ₹7,600 crore.

The budget document also had no compensation for the OMCs to account for the LPG losses.

The petroleum ministry had told oil companies in April 2020 that if the market-determined price of an LPG cylinder is less than the effective cost to the consumer, OMCs will retain the difference in a separate buffer account for future adjustments.

Shares of Indian Oil Corporation are trading 2.2% lower at ₹125.7, those of BPCL are trading 3.2% lower at ₹252.75, while those of HPCL are trading 4.5% lower at ₹342.15.