Oil marketing companies have reduced the price of 19 kg commercial LPG gas cylinders by Rs 58.50, effective July 1. With this, the price in Delhi has come down to Rs 1,665 per cylinder. However, there is no change in the cost of 14.2 kg domestic LPG cylinders, leaving household budgets unaffected despite repeated calls for a revision.
This latest cut follows a Rs 24 reduction announced in June, which had brought the price down to Rs 1,723.50. Earlier in April, the price was Rs 1,762. A marginal Rs 7 cut in February was offset by a Rs 6 hike in March.
A company official confirmed, “The rate of 19 kg commercial LPG gas cylinders has been reduced by Rs 58.50, effective from today.” The cut is expected to bring significant relief to small businesses, especially hotels, restaurants and other commercial establishments that depend on LPG for daily operations.
No change for domestic users
There is no corresponding relief for households. The price of the 14.2 kg domestic LPG cylinder remains unchanged. “There is no change in the prices of 14.2 kg domestic cylinders,” oil companies reiterated, despite growing demands for a price revision.
Currently, about 90% of India’s LPG consumption is for domestic cooking purposes. Only around 10% is used in the commercial, industrial, and automotive sectors. Historically, domestic LPG prices have remained stable even when commercial cylinder rates are revised.
Over the past decade, domestic LPG connections have more than doubled, reaching around 33 crore as of April 2025. The surge reflects how integral LPG has become to everyday life in India.
Check city-wise commercial LPG rates
Here are the revised LPG cylinders prices for different cities:
- Delhi: Rs 1,665 (earlier Rs 1,723.50)
- Noida: Rs 1,747.50
- Kolkata: Rs 1,769 (earlier Rs 1,826)
- Mumbai: Rs 1,616 (earlier Rs 1,674.50)
- Chennai: Rs 1,881 (earlier Rs 1,823.50)
- Bengaluru: Rs 1,796.00
This reduction is expected to ease operational costs for commercial establishments.
Crude oil prices a key driver behind LPG cost changes
India’s natural gas pricing is pegged to 10% of the crude oil basket. In May 2025, the average cost of India’s crude basket fell to $64.5 per barrel, the lowest in three years. This decline is likely to ease the financial burden on oil firms. If crude prices remain at this level, oil companies estimate LPG-related losses may drop by nearly 45% in FY26.
Crude oil prices are a primary determinant of LPG pricing, as LPG is derived during crude oil refining. The recent 12-day Iran-Israel conflict had sent oil prices soaring by 21–25% since late May. This trend typically benefits oil marketing companies (OMCs) that set LPG prices.