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New Delhi, September 1, 2025 – Oil Marketing Companies (OMCs) have reduced the price of the 19 kg commercial LPG cylinder by ₹51.50, effective from September 1. With this revision, the retail price of a commercial cylinder in Delhi now stands at ₹1,580. However, the cost of domestic LPG cylinders (14.2 kg) remains unchanged, offering no respite to household consumers.

This marks the third consecutive reduction in commercial LPG prices in recent months, bringing relief to hotels, restaurants, and other businesses that rely heavily on bulk cooking fuel.

Commercial LPG Prices See Multiple Reductions

OMCs typically review LPG cylinder prices at the start of each month, based on international energy prices and currency fluctuations. The recent cut is part of a series of downward revisions that began earlier this year:

• August 1, 2025 – Price reduced by ₹33.50

• July 1, 2025 – Price reduced by ₹58.50

• June 2025 – Price reduced by ₹24, bringing the rate down to ₹1,723.50

• April 2025 – Price was ₹1,762

• February 2025 – Price reduced by ₹7

• March 2025 – Price increased by ₹6

This latest cut further eases costs for businesses, especially in the hospitality sector, where LPG is a key expense.

No Change in Domestic LPG Prices

Despite multiple reductions in commercial LPG, domestic cylinder rates have not been altered. Currently, a 14.2 kg domestic LPG cylinder continues to cost the same as last month.

This trend reflects the broader pricing policy:

• 90% of India’s LPG consumption is for household use.

• The remaining 10% is used by commercial, industrial, and automobile sectors.

While domestic prices are usually kept stable to protect household budgets, commercial cylinder rates are more volatile and often adjusted in line with market conditions.

Why Domestic Rates Are Stable

Domestic LPG prices are politically sensitive, as millions of households depend on them for daily cooking needs. To avoid burdening families, the government often shields domestic consumers from frequent fluctuations by absorbing costs through subsidies or by limiting price changes.

Commercial cylinders, however, are used mainly in non-subsidized sectors such as restaurants, catering services, hotels, and industries. Since these businesses can pass on costs to consumers, commercial LPG prices tend to reflect market trends more directly.

Growing Dependence on LPG

The role of LPG in Indian households has expanded dramatically over the past decade. According to official data:

• Domestic LPG connections have doubled in the last 10 years.

• As of April 2025, India had nearly 33 crore LPG connections.

This surge highlights the critical role of cooking gas in the daily lives of Indian families, replacing traditional fuels like firewood and kerosene in most urban and semi-urban areas.

Impact on Businesses

For the hotel, catering, and restaurant industry, the price cut comes as a welcome relief. LPG cylinders are a significant part of their operating costs, and any reduction directly helps improve margins. With festivals and wedding season approaching, businesses expect higher demand, making the timing of this price cut especially important.

Final Outlook

While commercial LPG users are seeing benefits from the latest price adjustments, domestic consumers remain unaffected, as their rates continue to hold steady. This divergence underlines the dual pricing structure in India’s LPG market—where household affordability is prioritized, while commercial prices are allowed to fluctuate with market realities.

For now, hotels and restaurants will breathe a sigh of relief, but households will have to wait for a future revision to see any change in their LPG bills.