Commercial LPG Cylinder Prices Cut by ₹58.50

Oil marketing companies (OMCs) have announced a significant price reduction in the cost of 19-kg commercial LPG cylinders, offering welcome relief to the hospitality and food service sectors. Effective July 1, 2025, the price of a 19-kg commercial cylinder has been reduced by ₹58.50, bringing the new cost down to ₹1,665 in Delhi, according to the Indian Oil Corporation Limited (IOCL) website.

Price Cut Brings Relief to Restaurants and Businesses

This latest price revision is particularly beneficial for commercial establishments such as hotels, restaurants, catering services, and street food vendors, all of whom rely heavily on LPG for daily operations. The reduction eases fuel-related expenses, especially for businesses already burdened by operational costs and inflation.

Revised Commercial LPG Prices in Major Cities

Here is the updated list of 19-kg commercial LPG prices in key metro cities across India following the July 1 price revision:

• Delhi: Reduced from ₹1,723.50 to ₹1,665.00 (cut of ₹58.50)

• Kolkata: Reduced from ₹1,826.00 to ₹1,769.00 (cut of ₹57.00)

• Mumbai: Reduced from ₹1,674.50 to ₹1,616.50 (cut of ₹58.00)

• Chennai: Reduced from ₹1,881.00 to ₹1,823.50 (cut of ₹57.50)

These price cuts are applicable nationwide, though regional variations may occur depending on state taxes and transportation costs.

Fourth Consecutive Monthly Price Cut for Commercial LPG

This marks the fourth month in a row that OMCs have slashed commercial LPG prices:

• June 2025: Reduced by ₹24 per cylinder

• May 2025: Reduced by ₹14.50 per cylinder

• April 2025: Reduced by ₹41 per cylinder

Such consistent reductions signal positive trends in the global energy market, as well as the rupee’s improved performance against the dollar.

No Change in Domestic LPG Cylinder Prices

While commercial cylinders have seen a notable price cut, domestic LPG cylinder rates remain unchanged in the latest revision. The 14.2-kg household LPG cylinder, commonly used for cooking in Indian homes, continues to be priced as per last month’s rates.

This unchanged domestic rate is crucial as 90% of India’s total LPG consumption comes from residential users. The remaining 10% is distributed among commercial, industrial, and automotive sectors.

Why LPG Prices Fluctuate Monthly

LPG prices in India are reviewed and updated by state-run oil marketing companies such as IOCL, Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) on the first day of every month. These changes are based on:

• International LPG prices

• Rupee-dollar exchange rates

• Transportation and bottling costs

• Government taxes and subsidies

Due to these variables, prices differ across states. Cities with higher state taxes and transportation overheads often see higher LPG rates, even after central revisions.

Impact on the Food and Hospitality Sector

The July 2025 reduction in commercial LPG prices is especially impactful for the food and hospitality industries, which consume large volumes of LPG daily. Establishments such as:

• Restaurants and cafes

• Catering services and banquet halls

• Dhabas and food stalls

• Cloud kitchens and meal delivery setups

are expected to benefit significantly from the reduction, potentially passing on cost savings to customers or stabilizing menu prices.

Final Takeaway: A Positive Move for Commercial Consumers

With fuel prices being a major cost component for commercial kitchens and foodservice providers, this ₹58.50 reduction in 19-kg LPG cylinder prices is seen as a welcome move by industry stakeholders. While domestic users will have to wait for further updates, businesses can now breathe a sigh of relief amid this sustained downtrend.