 "OMCs cut commercial LPG cylinder prices by ₹51.50 from September 1")
Oil marketing companies (OMCs) have reduced the price of 19 kg commercial liquefied petroleum gas (LPG) cylinders by ₹51.50, effective September 1, 2025. In Delhi, the revised price now stands at ₹1,580.
However, the prices of 14.2 kg domestic cylinders remain unchanged.
This marks the latest in a series of price cuts in recent months. On August 1, OMCs reduced LPG cylinder prices by ₹33.50, following a cut of ₹58.50 on July 1. Earlier, prices were lowered by about ₹24 in June, ₹41 in April, and ₹7 in February. In March, however, cylinder prices increased slightly by around ₹6.
Compensation for OMCs
In August, the Union Cabinet approved a ₹30,000-crore compensation package for three state-run OMCs — Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) — to offset losses from domestic LPG sales.
The Ministry of Petroleum and Natural Gas will distribute the amount among the three companies in twelve instalments.
Public sector OMCs supply LPG cylinders at regulated prices. In 2024-25, while global LPG prices remained elevated, the government chose not to pass on the burden to consumers, resulting in significant under-recoveries for the firms. Despite these losses, IOCL, BPCL, and HPCL continued to supply LPG to households at affordable rates.
The government stated that the compensation would help the companies meet key requirements, including crude and LPG procurement, debt repayment, and sustaining capital expenditure.
Crude oil prices
Over the past month, the Indian Basket crude oil price averaged around $69.22 per barrel as of August 28, 2025. This reflected a modest decline from earlier in the summer but remained steady amid global volatility. Government support, coupled with easing crude oil prices, is enabling OMCs to reduce LPG cylinder prices.