LPG Cylinder Prices Cut: New Rates Announced

The oil marketing companies (OMCs) have announced a reduction in the price of 19-kg commercial LPG cylinders, effective from April 1, 2025. The price cut amounts to ₹41 per cylinder, bringing some relief to businesses and commercial establishments that rely on LPG for daily operations.

The revised prices are as follows:

• Delhi: ₹1,762 per cylinder

• Mumbai: ₹1,714.50 per cylinder

• Kolkata: ₹1,872 per cylinder

• Chennai: ₹1,924.50 per cylinder

This price adjustment comes as part of the regular review process undertaken by OMCs to align with global crude oil prices and domestic market conditions.

Domestic LPG Cylinder Prices Remain Unchanged

While the reduction in commercial LPG cylinder prices is a welcome change for businesses, the price of 14.2-kg domestic LPG cylinders remains unchanged. This means that households will continue to pay the same price for their LPG refills without any adjustments.

Impact on Businesses and Commercial Establishments

The price cut is expected to benefit restaurants, hotels, catering services, and other commercial entities that use LPG for cooking and operational needs. With a reduction of ₹41 per cylinder, these businesses may experience marginal savings on their fuel costs.

Industry experts suggest that fluctuating fuel prices can have a direct impact on small and medium enterprises (SMEs). Lower LPG costs can help in maintaining price stability in sectors where cooking gas plays a crucial role, such as the food and beverage industry.

Previous Price Hike and Market Trends

Just a month prior, on March 1, 2025, OMCs increased commercial LPG cylinder prices by ₹6 in major cities. This hike had raised concerns among businesses about rising operational costs. However, the latest price cut offers a slight reprieve from increasing fuel expenses.

The fluctuations in LPG prices are influenced by international crude oil rates, exchange rate variations, and domestic taxation policies. With global energy markets experiencing price volatility, OMCs continuously monitor and adjust LPG rates accordingly.

Government’s Role in LPG Pricing

LPG prices in India are largely regulated by OMCs, which review and revise the rates at the beginning of each month based on market conditions. The government provides subsidies on domestic LPG cylinders for select consumers, ensuring affordability for household usage.

While commercial LPG cylinders are not subsidized, price reductions like the latest ₹41 cut can provide temporary relief to businesses struggling with inflation and rising input costs.

Future Outlook on LPG Prices

Experts predict that LPG prices may continue to fluctuate in response to changing global energy dynamics. Businesses and households should stay informed about price revisions and government policies related to fuel subsidies and taxation.

For consumers relying on LPG, monitoring price trends can help in making cost-effective purchasing decisions. Businesses, particularly those in the hospitality and food service industries, may need to adjust their budgets based on monthly price updates from OMCs.

Conclusion

The reduction in commercial LPG cylinder prices by ₹41 brings slight relief to businesses and commercial users, particularly in the food and hospitality sectors. However, domestic LPG cylinder prices remain unchanged, keeping household expenses stable. With ongoing global energy fluctuations, future LPG price adjustments will depend on crude oil rates, market demand, and regulatory policies.