New Delhi, April 9 -- Oil marketing companies (OMCs) are likely to reduce losses on selling domestic LPG cylinders over the next few months due to the recent LPG price hike and falling international fuel prices, according to a report by Antique Stock Broking.

The government has increased the prices of LPG cylinders by Rs 50 from April. It has also raised excise duty on petrol and diesel by Rs 2 per litre.

According to the report, the LPG price hike is clearly aimed at covering the under-recoveries, or losses which OMCs are facing while selling LPG cylinders below the cost. These under-recoveries were becoming a financial burden.

It said, "With the latest hike, LPG losses will fall to INR 160/cyl in May-25, which we estimate will declin...