New Delhi, July 17 -- The government's LPG subsidy bill could cross Rs 1 lakh crore in FY27, creating a gap of around Rs 70,000 crore over the Rs 30,000 crore allocation provided in the Union Budget, as the Centre and oil marketing companies (OMCs) continue to absorb a larger share of the increase in fuel and LPG prices, according to a report by PL Capital.

The report said the Budget allocation of Rs 300 billion for LPG subsidy has already been overshot. At the current run rate, the LPG subsidy bill could exceed Rs 1 trillion, with the subsidy loss currently estimated at Rs 490 per cylinder.

It stated, "We estimate that the subsidy allocation of Rs3 00bn in budget for FY27 has been long overshot, and current LPG subsidy loss per cylinde...