Oil marketing companies reduced commercial LPG cylinder prices by ₹51.50, effective from September 1, 2025. [Photo Source: Reuters]
Oil marketing companies have once again reduced the price of commercial LPG cylinders. From September 1, 2025, the price of a 19 kg commercial LPG cylinder has been cut by ₹51.50. The new rate in Delhi now stands at ₹1,580. This comes as good news for hotels, restaurants, and other commercial establishments that rely on LPG for their daily cooking.
On the other hand, there is no change in domestic LPG cylinder prices. The commonly used 14.2 kg domestic cylinder will continue to cost the same as before.
This latest reduction is the third straight monthly cut for commercial LPG. On August 1, the price was lowered by ₹33.50, and before that, on July 1, it was cut by a bigger margin of ₹58.50.
Looking back further, the June price saw a drop of ₹24, bringing the rate down to ₹1,723.50. In April 2025, it was priced at ₹1,762. Earlier in the year, there was a small ₹7 cut in February, but in March, prices went up again by ₹6.
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These frequent ups and downs show that commercial LPG prices tend to be more unstable compared to domestic LPG prices.
India uses a very large amount of LPG, but the majority — nearly 90% — goes to domestic households. Only about 10% of LPG is used for commercial, industrial, or automobile purposes.
To protect citizens from the negative consequences of inflation and rising global energy prices, the government typically maintains local LPG prices at a steady level. Commercial LPG, on the other hand, is updated more frequently and is more directly linked to the prices of the global market.
The September price reduction is a huge relief for the food service and hotel industries. Rising food prices, employee wages, and other operating costs are already causing problems for hotels and restaurants. A reduction in LPG costs will help them manage their budgets better without raising prices for customers.
This is very important at a time when food inflation is pushing up the price of raw materials. With cheaper LPG, many small eateries and dhabas may be able to keep food prices affordable, which directly benefits customers.
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In the last decade, LPG has become a way of life in India. Domestic LPG connections doubled to approximately 33 crore by April 2025, reflecting how widespread it has become in household cooking.
Although commercial LPG makes up only a small part of total LPG use, it plays a vital role in India’s urban economy, especially in the food and hospitality industries. For many small business owners, every price cut offers much-needed financial relief.
