India Reduces Commercial LPG Cylinder Price by ₹24 Amid Global Oil Trends
| 2025-06-01
Representative image.
Commercial LPG prices in India drop by ₹24 to ₹1,723.50 per 19kg cylinder from 1 June, while domestic rates remain unchanged.
India cuts commercial LPG cylinder price by ₹24; no change in domestic rates
India’s oil companies have announced a reduction in the price of commercial liquefied petroleum gas (LPG) cylinders, lowering the cost of a 19kg unit by ₹24. The new rate, effective from 1 June 2025, brings the price of a commercial LPG cylinder to ₹1,723.50.
The price adjustment follows a similar reduction of ₹41 per cylinder implemented on 1 April 2025. According to industry sources, LPG rates are routinely revised in line with fluctuations in international crude oil prices and broader market dynamics.
Domestic LPG rates remain unchanged
The revised pricing affects only commercial cylinders used in sectors such as hospitality and industry. Prices for domestic LPG cylinders—typically used for household cooking—remain unchanged at ₹853 for a standard 14.2kg cylinder. The last revision for domestic users was a ₹50 increase implemented earlier this year.
LPG prices in India vary across regions due to local taxation and transportation costs. Despite the relatively modest size of the reduction, the latest price cut is expected to provide some cost relief for commercial establishments nationwide.
Oil pricing linked to crude benchmarks
India’s pricing formula for domestically produced natural gas, including LPG, is closely linked to global crude oil prices. The benchmark is calculated at 10 percent of the average cost of the Indian crude basket.
In May 2025, the average crude oil price dropped to $64.5 per barrel—the lowest level recorded in over three years. If crude prices continue to stabilise around this level, oil marketing companies in India could reduce their LPG-related financial losses by up to 45 percent for the 2025–26 financial year, according to industry analysts.
Growing LPG consumption and user base
India has seen a sharp rise in LPG consumption over the past decade, driven by government subsidy schemes and infrastructure expansion. As of 1 April 2025, there were approximately 330 million (33 crore) domestic LPG users across the country, reflecting a doubling of the consumer base in ten years.
While 90 percent of LPG in India is used for domestic cooking purposes, the remaining 10 percent is consumed in commercial, industrial, and automotive sectors. The distinction in usage has led to differential pricing, with commercial users generally paying higher rates.
Wider pricing policy and global context
The LPG price revision coincides with broader changes in India’s import and taxation policies affecting other essential commodities. On 31 May, the government announced a cut in the basic customs duty on crude palm oil, crude soybean oil, and crude sunflower oil from 20 percent to 10 percent. The move aims to curb inflationary pressures by lowering retail prices and supporting domestic edible oil processors.
India remains heavily reliant on imports for edible oils, sourcing over half of its domestic requirement. During the 2023–24 oil marketing year, the country imported 15.96 million tonnes of edible oils, amounting to a total value of ₹1.32 trillion.
Outlook and implications
Analysts note that continued stability in international crude markets could support further reductions in energy-related costs in India. However, the extent of relief for end-users will depend on additional factors such as exchange rate movements, domestic demand, and fiscal policy decisions.
For commercial consumers of LPG—especially in sectors like food service, small manufacturing, and transport—the current price reduction, while limited, offers some operational respite in a volatile global energy environment.
India’s oil companies have announced a reduction in the price of commercial liquefied petroleum gas (LPG) cylinders, lowering the cost of a 19kg unit by ₹24. The new rate, effective from 1 June 2025, brings the price of a commercial LPG cylinder to ₹1,723.50.
The price adjustment follows a similar reduction of ₹41 per cylinder implemented on 1 April 2025. According to industry sources, LPG rates are routinely revised in line with fluctuations in international crude oil prices and broader market dynamics.
Domestic LPG rates remain unchanged
The revised pricing affects only commercial cylinders used in sectors such as hospitality and industry. Prices for domestic LPG cylinders—typically used for household cooking—remain unchanged at ₹853 for a standard 14.2kg cylinder. The last revision for domestic users was a ₹50 increase implemented earlier this year.
LPG prices in India vary across regions due to local taxation and transportation costs. Despite the relatively modest size of the reduction, the latest price cut is expected to provide some cost relief for commercial establishments nationwide.
Oil pricing linked to crude benchmarks
India’s pricing formula for domestically produced natural gas, including LPG, is closely linked to global crude oil prices. The benchmark is calculated at 10 percent of the average cost of the Indian crude basket.
In May 2025, the average crude oil price dropped to $64.5 per barrel—the lowest level recorded in over three years. If crude prices continue to stabilise around this level, oil marketing companies in India could reduce their LPG-related financial losses by up to 45 percent for the 2025–26 financial year, according to industry analysts.
Growing LPG consumption and user base
India has seen a sharp rise in LPG consumption over the past decade, driven by government subsidy schemes and infrastructure expansion. As of 1 April 2025, there were approximately 330 million (33 crore) domestic LPG users across the country, reflecting a doubling of the consumer base in ten years.
While 90 percent of LPG in India is used for domestic cooking purposes, the remaining 10 percent is consumed in commercial, industrial, and automotive sectors. The distinction in usage has led to differential pricing, with commercial users generally paying higher rates.
Wider pricing policy and global context
The LPG price revision coincides with broader changes in India’s import and taxation policies affecting other essential commodities. On 31 May, the government announced a cut in the basic customs duty on crude palm oil, crude soybean oil, and crude sunflower oil from 20 percent to 10 percent. The move aims to curb inflationary pressures by lowering retail prices and supporting domestic edible oil processors.
India remains heavily reliant on imports for edible oils, sourcing over half of its domestic requirement. During the 2023–24 oil marketing year, the country imported 15.96 million tonnes of edible oils, amounting to a total value of ₹1.32 trillion.
Outlook and implications
Analysts note that continued stability in international crude markets could support further reductions in energy-related costs in India. However, the extent of relief for end-users will depend on additional factors such as exchange rate movements, domestic demand, and fiscal policy decisions.
For commercial consumers of LPG—especially in sectors like food service, small manufacturing, and transport—the current price reduction, while limited, offers some operational respite in a volatile global energy environment.
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