Oil companies in India have reduced the price of 19 kg commercial LPG cylinders by Rs24, bringing the new rate to Rs1,723.50, effective from June 1, 2025.
Earlier this year, on April 1, the price of commercial cylinders was lowered by Rs41. Oil firms regularly adjust LPG rates based on international crude oil prices and market conditions.
There is no change in the cost of domestic LPG cylinders used for household cooking with this revision. While commercial LPG prices have decreased, household cylinder rates remain stable.
LPG prices vary from state to state due to differences in local taxes and transportation costs. Despite being a small reduction, this price cut provides some economic relief to businesses across the country.
In India, approximately 90 percent of LPG is consumed for cooking in homes, while the remaining 10 percent is used in commercial, industrial, and automotive sectors.
India’s pricing policy for domestically produced natural gas is linked to crude oil prices and is set at 10 percent of the average cost of the Indian crude basket.
In May 2025, the average crude price fell to $64.5 per barrel, the lowest point in over three years. If crude oil prices remain stable around $65 per barrel, oil marketing companies are projected to see a 45 percent reduction in their LPG-related losses for the financial year 2026.
Over the past decade, the number of domestic LPG users in India has doubled. As of April 1, 2025, there are approximately 33 crore consumers.
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