Effective August 1, 2025, commercial LPG cylinder prices have been reduced by Rs 33.50, bringing relief to businesses across India. This price cut is the latest in a series of reductions announced by oil marketing companies (OMCs) in recent months. The revised rates have come into effect from today, providing respite to restaurants, hotels, and other commercial establishments that heavily rely on LPG for their daily operations.
City-Wise Revised Prices
The reduction of Rs 33.50 has resulted in revised prices for 19 kg commercial LPG cylinders in major cities:
These revised prices reflect the seventh adjustment in commercial LPG pricing this year, with only one increase recorded in March. Since March, there have been five consecutive price cuts, providing significant financial relief to businesses.
No Change in Domestic LPG Cylinder Prices
While commercial LPG cylinder prices have been reduced, the prices of 14.2 kg domestic LPG cylinders remain unchanged. The current prices for domestic cylinders in major cities are:
The prices of domestic cylinders have remained consistent since April 2025, when they were last adjusted.
Impact on Businesses
The reduction in commercial LPG cylinder prices is expected to positively impact businesses, particularly those in the food service and hospitality industries. Lower operating costs could enable businesses to increase their profit margins or pass the savings on to their customers.
Factors Influencing Price Reductions
The recent price cuts in commercial LPG cylinders are attributed to a drop in crude oil prices. The average price of India's crude oil basket fell to $64.5 per barrel in May 2025, the lowest in three years. This decline is projected to reduce LPG-related losses for OMCs by approximately 45% in the coming fiscal year. Because domestic gas pricing is linked to 10% of the crude oil basket, fluctuations in global oil rates significantly influence local fuel economics.
OMCs have announced a series of concessions in recent months, with prices dropping by Rs 157 over the past four months. Prices had previously fallen by Rs 58.50 at the beginning of July. OMCs had also announced reduction of prices by Rs 24 in June, Rs 41 in April, and Rs 7 in February, with only a marginal hike of Rs 6 in March.
