New Delhi, April 29 -- LPG under-recoveries of oil marketing companies (OMCs) are likely to surge to around Rs 80,000 crore in FY2027 if current trends persist, as supply disruptions and elevated global prices linked to the West Asia conflict continue to strain India's downstream energy sector, ICRA noted in a webinar.

"The stable pump prices for auto fuels amid elevated crude oil prices are impacting the profitability of oil marketing companies (OMCs), despite the recent reduction in excise duty," Prashant Vasisht, Senior Vice President and Co-Group Head, ICRA, said during an online meeting with the media on the West Asia crisis--impact and outlook--held on Wednesday.

He further said that ICRA estimates LPG under-recoveries at Rs 80,00...