OMCs cut commercial LPG cylinder price by ₹58.50; new rate effective today

Oil firms cut 19-kg commercial LPG price by ₹58.50 from July 1, bringing relief to eateries and small businesses. Domestic 14.2-kg cylinder price however remains unchanged

Oil marketing companies have reduced the price of 19-kg commercial LPG cylinders by ₹58.50, with the new rate taking effect from July 1. In Delhi, the revised price is ₹1,665 per cylinder.

 

This follows a ₹24 cut announced in June, which brought the price down to ₹1,723.50. In April, the rate was ₹1,762, while February saw a marginal ₹7 reduction that was partially offset by a ₹6 hike in March.

 

Domestic LPG price unchanged

 

The price cut offers much-needed relief for small businesses, especially hotels, restaurants and other commercial users that depend heavily on LPG for daily operations.

 

 

However, household budgets remain unaffected as the price of the 14.2-kg domestic LPG cylinder has not been revised, despite growing calls for a review. 

 

Most LPG use is domestic

 

About 90 per cent of India’s total LPG consumption is for household cooking, while the remaining 10 per cent is used by commercial, industrial and automotive sectors. Domestic cylinder prices typically remain stable, even as commercial rates fluctuate.

 

Crude oil trends

 

India’s policy pegs natural gas prices to 10 per cent of the crude oil basket. The average cost of India’s crude basket dropped to $64.5 per barrel in May 2025, the lowest in three years. This decline is expected to ease pressure on oil marketing companies. If crude prices remain near $65, oil firms estimate LPG-related losses could fall by about 45 per cent in FY26. 

 

Over the past decade, domestic LPG connections have doubled to around 33 crore by April 2025, highlighting how integral cooking gas has become to daily life across Indian households. 

ATF prices increased 

 

Domestic airlines in India face renewed cost pressures as Aviation Turbine Fuel (ATF) prices were increased across the country’s four major metros, effective July 1.

 

In Delhi, the ATF price rose by ₹6,271.5 per kilolitre, or 7.5 per cent, to ₹89,344.05 per kl. This hike reverses nearly half of the total reductions implemented over three consecutive months since April. Mumbai saw prices climb to ₹83,549.23 per kl from ₹77,602.73. In Chennai, the price was raised to ₹92,526.09 per kl, while in Kolkata it increased to ₹92,705.74 per kl. 

 

The increase in ATF prices aligns with a recent surge in international oil rates following Israel's attack on Iran last month. The hike is expected to further strain commercial airlines, as fuel constitutes nearly 40 per cent of their operating costs.