As of July 1, 2025, commercial LPG cylinder prices have seen a decrease, offering some relief to businesses. The reduction in price is ₹19, bringing the cost of a 19-kg cylinder to ₹1,745.50. This is the second consecutive monthly rate cut.
Factors Influencing LPG Prices in India
Several factors influence the price of LPG cylinders in India:
- Global Crude Oil Prices: LPG prices are closely linked to the fluctuations in international crude oil prices. The Indian pricing formula for domestically produced natural gas calculates prices based on 10% of the average cost of the Indian crude basket. In May 2025, the average crude oil price dropped to $64.5 per barrel, the lowest in over three years.
- Currency Exchange Rates: The exchange rate between the Rupee and the Dollar also plays a role in determining LPG prices.
- Market Dynamics: LPG rates are routinely revised based on broader market dynamics.
- Taxes and Transportation Costs: LPG prices vary across regions due to local taxes and transportation costs.
- Government Subsidies: The Indian government provides domestic LPG cylinders at subsidized rates to low-income sections of society, with the subsidy amount directly transferred to the customer's bank account.
Impact on Consumers and Businesses
- Commercial Sector: The price cut in commercial LPG cylinders is expected to provide some cost relief for commercial establishments such as restaurants, hotels, and industries.
- Domestic Sector: The price of domestic LPG cylinders remains unchanged. As of June 30, 2025, the price of a 14.2 kg domestic LPG cylinder in Delhi is ₹853.
LPG Consumption in India
Over the last decade, the number of domestic LPG consumers has doubled, reaching approximately 33 crores as of April 1, 2025. The Indian government is promoting the use of LPG as a clean cooking fuel to improve health and reduce deforestation.
City-Wise LPG Prices
While a specific city-wise price list for commercial cylinders is not available, prices vary by region due to factors such as local taxes and transportation costs.
