Changes From 1 September: Commercial LPG Prices Slashed By ₹51.50, Third Drop In Two Months

Another cut in commercial LPG pricing has been announced by oil marketing companies (OMCs). Effective from September 1, 2025, the price of a 19 kg commercial LPG cylinder has been cut by ₹51.50. The revision has brought cheer to businesses across India, especially in the hospitality and food service sector.

In the national capital, Delhi, the retail price of the 19 kg commercial LPG cylinder now stands at ₹1,580. By contrast, the cost of the 14.2 kg domestic LPG cylinder remains unchanged, offering no relief to household consumers.

Regular Cuts During the Previous Months

This is not an isolated reduction. Over the past six months, commercial LPG rates have been reduced three times in a row since July alone still having trouble with overall high input costs.

Rate Revision Chronology (19 kg Commercial Cylinder – Delhi):

• September 1: Reduced by ₹51.50 → New rate: ₹1,580
• August 1: Reduced by ₹33.50 → ₹1,631.50
• July 1: Reduced by ₹58.50
• June: Reduced by ₹24
• April: Reduced by ₹41
• March: Increased by ₹6
• February: Reduced by ₹7

In total, over ₹140 has been shaved off the commercial LPG rate since July, offering noticeable relief to businesses dependent on regular fuel supplies.

Impact on Businesses

The move is expected to benefit a wide range of commercial establishments, including:

• Restaurants and hotels, which rely heavily on LPG for cooking.
• Catering units and bakeries, where multiple cylinders are consumed daily.
• Small food vendors and canteens, where cost margins are thin.

For these businesses, energy expenses are a significant part of operational costs. With three consecutive reductions, owners can expect some breathing room amid other rising expenses such as raw materials and labor.

Industry sources warn that although this provides some temporary respite, the hospitality industry is still facing significant input expenses in general.

No Change in Domestic LPG Prices

While commercial consumers benefit, domestic LPG prices remain unchanged. The 14.2 kg cylinder, used widely by households, has seen no revision for months. This difference between domestic and commercial pricing demonstrates how the government and OMCs are attempting to reduce business inflationary pressures while maintaining consistent household subsidies.

Why LPG Prices Fluctuate Every Month

Oil marketing companies Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) revise LPG cylinder rates on the first day of every month.

The changes depend on:

• Global benchmark prices of propane and butane.
• Crude oil price movements.
• Foreign exchange fluctuations.
• Freight, insurance, and handling charges.

A rise in global energy prices often leads to higher domestic LPG costs, while a dip results in rate reductions.

Outlook for the Coming Months

With global crude oil markets showing volatility, experts say future price adjustments will remain unpredictable. India may see more cutbacks in the future if global prices level out. Disruptions to the supply chain or geopolitics, however, might cause rates to rise once more.

For now, businesses that rely on commercial LPG have reason to welcome September’s rate change.