New Delhi, Aug 1 (UNI) Oil marketing companies (OMCs) on Saturday reduced the prices of 19-kg commercial LPG cylinders by up to ₹209 across major cities, providing relief to hotels, restaurants, caterers, roadside eateries and other businesses dependent on LPG for daily operations.
However, the prices of 14.2-kg domestic LPG cylinders remained unchanged, offering no immediate relief to household consumers.
The latest revision, which came into effect from August 1, marks the second consecutive monthly reduction in commercial LPG prices. The move follows a cut announced in July and reflects easing trends in international LPG prices after months of volatility caused by geopolitical tensions and supply disruptions.
Under the revised rates, the price of a 19-kg commercial LPG cylinder has been reduced by Rs 202 in Delhi, Rs 209 in Kolkata, Rs 194 in Mumbai and Rs 200 in Chennai. Following the cut, a commercial cylinder will now cost Rs 2,728 in Delhi, Rs 2,872.50 in Kolkata, Rs 2,691.50 in Mumbai and Rs 2,906 in Chennai.
With the latest revision, commercial LPG prices have declined by nearly ₹400 per cylinder over the past two months, providing substantial relief to businesses where fuel constitutes a major operating expense. The reduction is expected to benefit the hospitality sector, including hotels, restaurants, cafés, bakeries, catering services and small food vendors, many of whom had been grappling with elevated fuel costs in recent months.
Commercial LPG prices are revised every month based on changes in international benchmark prices and fluctuations in foreign exchange rates. They are generally more responsive to market movements than domestic LPG prices, which are revised separately and are influenced by government policy considerations.
Despite the sharp reduction in commercial cylinder prices, domestic consumers will continue to pay the existing rates for 14.2-kg cooking gas cylinders, as OMCs have not announced any revision for household LPG. Domestic LPG prices have remained unchanged even as commercial rates have witnessed two consecutive monthly reductions.
The latest price cut comes as global energy markets have shown signs of stabilisation after witnessing considerable volatility earlier this year. Concerns over supply disruptions arising from geopolitical developments had pushed up international LPG prices, leading to higher costs for commercial consumers. As these pressures eased, oil marketing companies passed on part of the benefit through successive reductions in commercial LPG prices.
Industry experts believe the reduction will help ease operating costs for businesses, particularly small and medium-sized establishments in the food and hospitality sector. While the lower fuel prices may improve profit margins for commercial users, whether the benefit is passed on to consumers through lower food prices will depend on individual businesses and prevailing market conditions.
The latest revision highlights the monthly pricing mechanism for commercial LPG, which closely tracks international market trends, while households await any future changes in domestic cooking gas prices.
