In a welcome move for small businesses, oil marketing companies have reduced the price of 19-kg commercial LPG gas cylinders by ₹58.50, bringing the new rate down to ₹1,723.50, effective from today. This marks the third price cut in recent months — following a ₹24 reduction in June and a ₹7 cut in February, though March saw a minor ₹6 hike.
Relief for Hotels, Eateries, and Shops
The price drop offers much-needed respite to restaurants, hotels, and small enterprises that heavily depend on LPG for daily operations. A company official confirmed the revision, calling it part of the companies’ dynamic pricing model based on international market trends.
No Change in Household LPG Prices
Despite repeated calls for a review, there has been no change in the price of the 14.2-kg domestic LPG cylinder, which continues to affect household budgets. Oil firms reiterated, “There is no change in the prices of 14.2 kg domestic cylinders.”
Household Consumption Dominates LPG Use
India’s LPG consumption is dominated by household use, accounting for nearly 90% of total LPG usage. The remaining 10% is split across commercial, industrial, and automotive sectors. This often results in domestic prices remaining insulated from fluctuations that affect commercial cylinder rates.
Crude Oil Prices Offer Breathing Space
One reason for recent LPG price corrections is the fall in global crude oil prices. India’s average crude oil basket price in May 2025 fell to $64.5 per barrel, the lowest in three years. Since LPG prices are linked to 10% of the crude basket, this decline is likely to reduce oil companies’ LPG-related losses by about 45% in FY2026.
Domestic LPG Usage Surges
India has seen a dramatic rise in LPG penetration, with the number of domestic connections doubling to 33 crore by April 2025, underscoring how vital cooking gas is in daily life across urban and rural India.
While businesses benefit from the latest cut, millions of households continue to feel the pinch, awaiting a price relief that is yet to materialise.
