Commercial LPG cylinder prices cut by up to ₹209; domestic rates unchanged

State-Owned Oil Marketing Companies Reduce Commercial LPG Prices Across Major Cities

State-owned oil marketing companies lowered the prices of 19-kg commercial liquefied petroleum gas (LPG) cylinders by up to ₹209 across major cities, with the revision taking effect on August 1. The adjustment marks the second consecutive monthly price cut for commercial consumers, according to media reports.

In Delhi, the retail price of a commercial cylinder fell by ₹202. In Kolkata, prices dropped by ₹209, bringing the revised cost of a 19-kg commercial LPG cylinder to ₹2,872.50. Households relying on 14.2-kg domestic LPG cylinders, however, saw no changes to their rates, as the pricing relief applies exclusively to commercial users such as restaurants, hotels, and caterers.

Commercial LPG Rates Eased Following Earlier Conflict-Driven Surges

The latest reduction follows a period of steep hikes in commercial LPG prices triggered by supply disruptions and concerns over global LPG availability amid geopolitical tensions in West Asia. Commercial LPG rates had risen sharply in May as the conflict disrupted supply chains and fuel markets.

During the war, the government had issued orders under the Essential Commodities Act requiring C3-C4 streams to be utilised exclusively for LPG production, diverting them from petrochemical and other downstream uses. Authorities also restricted or suspended supplies to customers as part of measures to prioritise domestic household demand, while directing oil marketing companies to maintain comprehensive data on commercial and industrial LPG consumers to facilitate efficient planning and supply management.

The supply situation has since improved. On June 25, the Union government restored industrial and commercial LPG supplies to pre-crisis levels and withdrew all sector-specific allocation caps imposed during the peak of the West Asia conflict, restoring 50 per cent of supplies to customers whose allocations had earlier been suspended. Following these improvements, the OMCs reduced the price of 19-kg commercial LPG cylinders by up to ₹183.50 on July 1 across major cities before announcing the latest cuts.

Cabinet Committee on Security Reviews Global Supply Chains

Meanwhile, Prime Minister Narendra Modi on Thursday chaired an extended meeting of the Cabinet Committee on Security (CCS) to review the geopolitical situation in West Asia and assess measures to ensure uninterrupted supply chains amid ongoing conflicts around the Strait of Hormuz, the Black Sea, the Red Sea and the Gulf of Aden.

The meeting was attended by permanent CCS members—Defence Minister Rajnath Singh, Home Minister Amit Shah, External Affairs Minister S. Jaishankar, and Finance Minister Nirmala Sitharaman—as well as special invitees including Chemicals and Fertilisers Minister J.P. Nadda, Commerce Minister Piyush Goyal, Shipping Minister Sarbananda Sonowal and Petroleum Minister Hardeep Singh Puri, official sources said.

Cabinet Secretary T.V. Somanathan briefed the committee on the prevailing geopolitical situation and outlined the government's measures to ensure adequate supplies of petroleum products, including LNG, LPG and fertilisers. According to the briefing, India has diversified its sources of LPG procurement, while overall inventories and supplies of key petroleum products remain adequate. The availability of sufficient crude oil has also enabled Central Public Sector Enterprise (CPSE) refineries to operate at utilisation levels exceeding 100%, ensuring uninterrupted production of petrol, diesel and other petroleum products.