LPG Price Reduced: Relief For Businesses As Rates Decline

Prices of OMC-commercial LPG cylinders were trimmed by OMCs (Oil Marketing Companies), putting business houses on relief. The price of the 19-kg commercial LPG cylinder will decrease from April 1, 2025, by Rs 41. The alteration slashes the price to retail level at Delhi to Rs 1,762 from Rs 1,803. Cutting it equally elsewhere in the metropolis and principal cities eased charges for hotels, restaurants, and other business houses depending upon LPG for operating daily businesses.

Revised Commercial LPG Prices in Major Cities  

• Delhi: Rs 1,762 (previously Rs 1,803) 

• Mumbai: Rs 1,714.50 (previously Rs 1,755.50) 

• Chennai: Rs 1,924.50 (previously Rs 1,965.50) 

• Kolkata: Rs 1,872 (previously Rs 1,913)

The following price cut comes after a pattern of fluctuation in LPG rates driven by global energy market trends. Commercial LPG prices have seen hikes and cuts in the last two months. The rates were cut by Rs 7 in February but increased by Rs 6 in March. The latest cut gives a modest respite to companies that are witnessing rising operating costs.

For LPG cylinder-based businesses such as catering services, restaurants, and hotels, this price cut is a relief. As cooking fuel is a significant expense, even marginal cuts can help their cost structures. But the volatility in prices remains a concern, as frequent changes render it impossible for businesses to plan their budgets.

Unlike commercial LPG, prices of domestic LPG are not changed in this revision. Domestic consumers who employ the standard 14.2-kg cylinder will see no change in their fuel price. This is stabilising for domestic consumers who rely on LPG for household cooking.

International crude oil prices, exchange rates, and government policy decide prices of LPG in India. Periodically, every month, the oil companies modify prices based on these factors. The international energy market is geoeconomically unstable with supply-demand disequilibrium and geopolitical events adding to price volatility. 

In March, Indian Oil Corporation's Indane unit had hiked commercial LPG prices, increasing a 19-kg cylinder price from Rs 1,797 to Rs 1,803. With the recent reduction, the price is now lower than the pre-March hike level, providing some respite to businesses.

As firms adjust to the new prices, everyone is focused on how global energy prices will dictate future Indian LPG prices. Meanwhile, the cut brings immediate relief from ongoing economic uncertainty.