News - Analysis

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Commercial LPG Prices Reduced

Report filed 1 July 2025 • Business Desk

Commercial LPG cylinders at a distribution center

Representative Image

Commercial LPG Cylinder Prices Cut by ₹58.50

🔍 Overview

Effective Date: July 1, 2025
What's Changed: Oil marketing companies (OMCs) have decreased the price of 19 kg commercial LPG cylinders by ₹58.50 nationwide (m.economictimes.com).
Who's Affected: The cut benefits commercial users—such as hotels, restaurants, and small businesses. Domestic 14.2 kg cylinders see no change.

📊 City‑Wise Pricing (19 kg Commercial Cylinders)

City New Price (₹)
Delhi 1,665
Mumbai 1,616
Kolkata 1,769
Chennai 1,823.50

Prices vary slightly due to local taxes and transport costs (stocktwits.com, republicworld.com).

🧾 Historical Context

  • April: cut by ₹41
  • May: cut by ₹14.50
  • June: cut by ₹24
  • Cumulative reduction (April–July): ₹138+ for commercial cylinders (stocktwits.com, ndtvprofit.com).

Domestic cylinder pricing saw a ₹50 increase in April, remaining stable since (indianewsnetwork.com).

📌 Why It Matters

Commercial relief: Businesses in sectors like hospitality, catering, and food will experience lower fuel costs, easing pressure on tight operational margins.
Domestic untouched: Household cooking gas remains unchanged—₹853 in Delhi, ₹852.50 in Mumbai, ₹879 in Kolkata, ₹868.50 in Chennai (republicworld.com).
Pricing policy: LPG rates are reviewed monthly, influenced by crude benchmarks and forex rates. That said, subsidies and policy decisions currently favour shielding domestic consumers (indianewsnetwork.com).

🧮 Broader Indicators

Domestic LPG constitutes ~90% of India's usage; commercial accounts for ~10% (m.economictimes.com).
Decline in global crude (~US \$64–65/barrel in May) has reduced OMCs' losses and allowed price relief measures (goodreturns.in).

📣 Implications & Outlook

Short‑term: Commercial establishments will experience a cost advantage starting July 1.
Medium‑term: Domestic consumers continue to wait; no indication yet of any rollback in household LPG prices.
Long‑term: Further adjustments will depend on global oil trends, exchange rates, and government subsidy policy. Monthly reviews remain dynamic.