Big cut in commercial LPG prices from July 1, domestic rates unchanged

Oil marketing companies on Tuesday slashed the price of commercial LPG gas cylinders by Rs 58.50, offering much-needed relief to hotels, restaurants, and small businesses across India. In Delhi, the price of a 19 kg commercial LPG cylinder now stands at Rs 1,665, a significant drop from last month’s Rs 1,723.50. However, the move leaves households disappointed, as there’s no change in the price of domestic LPG cylinders used in Indian kitchens every day.

How Prices Have Moved in 2025

The commercial LPG segment has seen steady price adjustments this year. After a Rs 24 reduction in June and a Rs 6 hike in March, July’s Rs 58.50 cut marks the sharpest drop so far. In contrast, February month saw only a minor Rs 7 dip. These fluctuations are closely tied to global oil trends and domestic pricing policies.

Households Left Waiting

According to the Economic Times, despite appeals from consumers and state governments, the price of the widely used 14.2 kg domestic LPG cylinder remains unchanged. This is significant because nearly 90% of LPG consumption in India is for home cooking. The lack of price revision means no immediate savings for the average household.

Why Commercial Prices Dropped

An oil company official confirmed the price cut, citing relief for commercial users like eateries and small-scale industries that rely on LPG daily. The price drop is linked to falling global crude prices, which have brought down India's average crude basket to $64.5 per barrel in May 2025, the lowest in three years.

What It Means for the Future

If crude prices remain around $65, oil firms expect their LPG-related losses to reduce by nearly 45% in FY26. This could create more room for future adjustments in both commercial and domestic LPG pricing, but for now, only businesses benefit.

The Bigger Picture: LPG in Every Kitchen

Over the past decade, domestic LPG connections have doubled, reaching over 33 crore households by April 2025. This highlights how integral cooking gas has become to everyday life in India — and why any price shift, or lack thereof, deeply affects millions.