New Delhi: Oil companies have reduced the price of commercial LPG cylinders by Rs 24. This new price is effective from June 1. Now, a 19 kg commercial LPG cylinder will cost Rs 1,723.50. This is the second time this year that the price has been cut. Earlier, on April 1, the price was reduced by Rs 41.
LPG prices are revised often. They depend on international crude oil prices and other market factors. These changes help oil companies manage their costs better.
This price cut is only for commercial LPG cylinders. There is no change in the price of domestic LPG cylinders. These are the cylinders used in homes for cooking. In March this year, the government had increased the price of domestic cylinders by Rs 50. That hike was due to rising global oil prices after trade tariffs were introduced by US President Donald Trump.
In India, around 90 per cent of LPG is used in homes. Only about 10 per cent is used in shops, restaurants, industries, and vehicles. So, even a small cut in commercial prices helps many businesses.
The cost of LPG is different in each state. This is because of local taxes and transport charges. But overall, the Rs 24 cut will bring some relief to small and medium businesses.
India links its domestic gas prices to the global crude oil market. The price is fixed at 10 per cent of the average crude oil price in the Indian basket. In May 2025, this average crude oil price was USD 64.5 per barrel. This is the lowest in more than three years.
If oil prices stay near USD 65 per barrel, oil companies may reduce their losses from LPG sales by about 45 per cent in the financial year 2026.
Over the last 10 years, LPG usage in India has gone up fast. As of April 1, 2025, there are about 33 crore domestic LPG users across the country.
