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Oil companies have reduced the price of 19 kg commercial LPG cylinders by ₹24, with the new rate taking effect from June 1. The revised retail price for a 19 kg commercial LPG cylinder is now ₹1,723.50.
Earlier this year, on April 1, the price of commercial cylinders was lowered by ₹41. Oil firms adjust LPG rates regularly based on international crude oil prices and market conditions.
There is no change in the cost of domestic LPG cylinders used for household cooking in this revision. Commercial LPG prices have seen a drop, but household cylinder rates remain stable.
LPG prices vary from one state to another due to differences in local taxes and transportation costs. Despite being a small cut, the reduction provides some economic relief to businesses across the country.
Most LPG use is domestic
In India, about 90 per cent of LPG is consumed for cooking in homes, while the remaining 10 per cent is used in commercial, industrial, and automotive sectors.
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In March, the central government had raised the price of domestic LPG cylinders by ₹50. This move came after global crude oil prices rose following tariffs introduced by US President Donald Trump.
Crude oil trends
India’s pricing policy for domestically produced natural gas links it to crude oil prices. It is set at 10 per cent of the average cost of the Indian crude basket. In May 2025, the average crude price dropped to $64.5 per barrel — the lowest seen in over three years.
If crude oil prices remain stable around $65 per barrel, oil marketing companies are expected to see a 45 per cent reduction in their LPG-related losses in the financial year 2026.
Over the past decade, the number of domestic LPG users in India has doubled. As of April 1, 2025, there are around 33 crore consumers.
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