Commercial LPG cylinder price cut by Rs 58.50 from today
ommercial LPG cylinder prices slashed by ₹58.50 starting today, offering relief to businesses amid rising costs. Check new rates and details
From July 1, 2025, the price of a 19 kg commercial LPG cylinder has been slashed by ₹58.50 across India
Delhi: ₹1,665 (previously ₹1,723.50)
Mumbai: ₹1,616–1,616.50
Kolkata: ₹1,769
Chennai: ₹1,823.50
Commercial LPG rates adjust monthly based on global crude movement, domestic taxes, and OMC expenses The current trend of consecutive cuts suggests
Declining crude prices globally (e.g., around $65/barrel recently)
Crushing inflationary pressure on small businesses is alleviated gradually through these steps.
These establishments rely heavily on 19 kg cylinders for cooking/heating. A ₹58.50 cut per cylinder can translate into significant monthly cost savings, especially for high-usage setups
Operations like bakeries, food kiosks, and local dhabas can now reinvest or maintain pricing without increasing costs
While direct household savings aren’t promised, pass-through benefits may occur, as businesses absorb less input cost—potentially fostering modest consumer relief .
14.2 kg domestic cylinder rates are unchanged since the last revision
This omission has caused public chatter about inequality: why slash commercial costs but leave cooking gas untouched?
| Month | Reduction | Remarks |
|---|---|---|
| April 1 | ₹41 | First cut of year |
| May 1 | ₹14.50 | Continued relief |
| June 1 | ₹24 | Steady reductions |
| July 1 | ₹58.50 | Largest single cut |
Crude-linked pricing formula: India ties LPG rates to global oil benchmarks; when crude drops, so should cylinder rates
Exchange rates, transport fees, and local state taxes also influence these monthly adjustments.
Cost push inflation: Fuel accounts for ~10% of core CPI. Cheaper LPG eases inflationary pressure marginally
Business profitability: Small firms with thin margins can use savings to hire, invest, or stabilize prices.
For the government, these cuts offer a way to insulate sectors without major subsidy expenditure, since commercial LPG isn’t subsidized.
OMC official: “The rate of 19 kg commercial LPG cylinders has been reduced by ₹58.50, effective from today. This comes after the earlier cuts…
Expert commentary emphasizes continuing volatility: more changes may follow as crude price behaviors evolve .
Plan inventory: Bulk buys before further cuts lock savings in.
Reassess pricing: Restaurants could offer value deals or promotions.
Passing savings: Transparent communication (“LPG costs down, giving discount!”) builds brand goodwill.
Monitor monthly circulars: Stay informed; schedule refills accordingly.
So far, no indication domestic cylinder rates will fall imminently. But if global crude prices and rupee strength continue positively, the Government and OMCs might consider a downward revision—even though domestic LPG already benefits from existing subsidies .
Earlier, in June, oil firms had announced a Rs 24 cut for commercial cylinders, setting the rate at Rs 1,723.50. In April, the price stood at Rs 1,762. February saw a small Rs 7 reduction, but March reversed this slightly with a Rs 6 increase.
Continuation of cuts? If crude remains low, expect further reductions.
Policy shift? Subsidy or pricing policies could expand to include domestic users.
Tech updates: More businesses may embrace cylinder tracking or weight monitoring following anecdotal red-flag incidents on Reddit.
Environmental note: With global climate goals, alternatives like electric or solar kitchens may accelerate in commercial setups.
India’s gradual LPG price deregulation aimed to:
- Improve transparency in pricing
- Encourage market competition among OMCs
- Reduce the fiscal burden of LPG subsidies
- Domestic users are more vulnerable due to static income and reliance on subsidized cylinders.
- Commercial users benefit disproportionately during global price drops, as they receive full benefit of rate reductions.
There’s growing demand for a dynamic subsidy structure, where even domestic rates align with inflation, not just global crude trends.
Example – Small Restaurant using 10 cylinders/month:
- Old price (Delhi): ₹1,723.50 × 10 = ₹17,235
- New price (Delhi): ₹1,665.00 × 10 = ₹16,650
- Monthly savings: ₹585
Over a year, that adds up to ₹7,020, which can be used for:
- Purchasing equipment
- Offering discounts or deals
- Paying staff bonuses
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