In a move to ease the burden on businesses, Indian Oil Marketing Companies (OMCs) have announced a reduction in the prices of 19-kg commercial LPG cylinders in several major cities, including Delhi, Mumbai, and others. This price cut comes after a period of consecutive hikes and is expected to provide some relief to commercial establishments using LPG for cooking and heating purposes.
A Welcome Change in Prices Across Major Cities
As of January 1, 2025, the price of the 19-kg commercial LPG cylinder has been reduced by Rs 14.5 in Delhi, bringing the price down to Rs 1,804. In Mumbai, the price was cut to Rs 1,756, down from Rs 1,771. Other metro cities, such as Chennai and Kolkata, also saw price reductions. In Chennai, the price now stands at Rs 1,966, while Kolkata’s price has been adjusted to Rs 1,911.
This decrease comes as a relief to consumers after five consecutive months of price hikes in 2024, which had been driven largely by fluctuations in global oil prices and changes in exchange rates. These factors had significantly impacted the cost of LPG in the country, pushing up prices for businesses relying on commercial LPG cylinders.
Interestingly, the price for the smaller 14.2 kg commercial LPG cylinders remains unchanged, indicating that the cuts are primarily targeting larger cylinder sizes used by hotels, restaurants, and other businesses.
Price Cuts Reflect Global Market Trends
The reduction in LPG prices comes amid a global trend of easing oil prices, which have fluctuated in recent months due to geopolitical developments and changes in market dynamics. The cost of crude oil plays a significant role in determining the price of LPG, which is derived from it. As the global oil market stabilizes, countries like India are seeing some relief in energy costs.
In addition to the price cut for LPG, India’s aviation industry also benefited from a reduction in jet fuel prices. Aviation turbine fuel (ATF) prices dropped by 1.54%, or ₹1,401.37 per kilolitre, bringing the cost down to ₹90,455.47 per kilolitre in the national capital. This cut is particularly significant for airlines operating in India, as jet fuel is one of their largest operating costs.
A Relief for Small and Medium Businesses
The price cut is expected to bring significant relief to small and medium-sized businesses that rely on commercial LPG for their operations. Restaurants, food joints, and small businesses will benefit from lower energy costs, potentially reducing their overheads and making it easier to manage expenses amid a challenging economic environment.
However, it is important to note that the commercial LPG price for the smaller 14.2 kg cylinders has not been adjusted. These cylinders are typically used in households, and their prices remain unaffected, which means that domestic consumers will not see any change in their LPG bills.
New Prices for 19-kg Commercial LPG Cylinders
Here are the new prices for the 19-kg LPG cylinder across major cities:
- Delhi: Rs 1,804
- Mumbai: Rs 1,756
- Chennai: Rs 1,966
- Kolkata: Rs 1,911
This price cut reflects the government’s ongoing efforts to balance the cost of energy products for both businesses and consumers, even as the global market remains volatile.
