Understand the reasons behind the ₹58.50 price reduction on 19 kg commercial LPG cylinders from July 1, 2025. Explore how this impacts hotels, restaurants, households, and the broader LPG market.
Introduction
In a significant move for the hospitality and food service industry, the price of the 19 kg commercial LPG cylinder has been reduced by ₹58.50, effective July 1, 2025. This marks the fifth straight monthly reduction in commercial cooking gas prices. The price cut brings relief to small and medium businesses that rely on LPG for daily operations, including restaurants, cafes, food trucks, bakeries, and hotels.
While this drop in commercial rates is a welcome change for businesses, there is no change in domestic LPG cylinder prices, which remain the same across most cities in India.
Price Drop Overview
Oil marketing companies revise LPG prices on the 1st of every month based on international benchmark rates and the dollar-rupee exchange rate. The new price of a 19 kg commercial cylinder in Delhi is now approximately ₹1,665, down from the previous ₹1,723.50.
Here’s a glance at approximate new commercial LPG prices across major cities:
- Delhi: ₹1,665
- Mumbai: ₹1,616
- Kolkata: ₹1,769
- Chennai: ₹1,823
- Bengaluru: ₹1,796
The reduction varies slightly due to local taxes and transportation costs, but the nationwide cut remains consistent at ₹58.50.
Why Is the Price Being Reduced?
1. Global Crude Prices Falling
The global crude oil market has been experiencing a downward trend in 2025 due to oversupply and softening demand. India’s LPG imports are linked to international prices, so a drop in the global rate leads to a reduction in domestic LPG prices.
2. Favorable Dollar Exchange Rate
A stable or stronger Indian Rupee against the US Dollar also helps lower import costs for petroleum products, including LPG.
3. Economic Recovery Strategy
The government and oil marketing companies are likely using this price adjustment to support economic recovery, especially in sectors hit hard by inflation and previous fuel price hikes.
Impact on Businesses
The price cut is a big relief for the hospitality and service sectors, which are among the largest users of commercial LPG cylinders. Here’s how it will help:
- Cost Reduction: Businesses using multiple cylinders per month can now save thousands of rupees in operational costs.
- Improved Profit Margins: Lower fuel costs mean better profit margins for food businesses and catering services.
- Price Stability for Consumers: With reduced input costs, small food outlets and restaurants may avoid increasing menu prices, benefiting consumers too.
- Support for MSMEs: Micro and small enterprises, particularly street vendors and small eateries, will find this reduction especially beneficial in controlling expenses.
No Relief for Domestic Consumers
Despite repeated reductions in commercial LPG cylinder prices since April 2025, the price of 14.2 kg domestic LPG cylinders remains unchanged. The cost for domestic users currently ranges between ₹880 to ₹920, depending on the city.
While domestic LPG is subsidized for eligible users, many households still pay the market rate. There has been growing demand for a similar cut in domestic prices, especially from middle-income families.
Trend of Monthly Reductions
The latest ₹58.50 cut is part of a pattern observed over the last few months. Here’s a brief timeline of commercial LPG price drops in 2025:
- April: Reduced by ₹41
- May: Reduced by ₹14.50
- June: Reduced by ₹24
- July: Reduced by ₹58.50
In total, the commercial LPG price has been reduced by over ₹138 since April, making it more affordable for businesses compared to the start of the financial year.
Future Outlook
Experts suggest that if global crude prices continue to remain low and the rupee remains stable, further reductions may be seen in the coming months. However, much depends on geopolitical factors, OPEC decisions, and India’s domestic fuel demand.
As for domestic LPG prices, the government has remained silent on any immediate change. Consumer advocacy groups have urged oil companies to extend similar relief to household consumers, but no such announcement has been made.
Conclusion
The ₹58.50 reduction in commercial LPG cylinder prices from July 1, 2025, is a much-needed relief for businesses navigating a competitive and cost-sensitive environment. The move will ease operating expenses, especially for food and hospitality sectors that rely heavily on LPG.
However, the absence of any change in domestic LPG rates continues to be a concern for common households. Stakeholders now look forward to future revisions that might bring good news for domestic consumers as well.