This was the first reduction in the price of commercial LPG in 2026 after the rates were hiked by ₹1,345 per refill in four tranches since March 7.
However, there was no immediate relief for households as the price of domestic LPG, which was increased in two tranches by almost ₹90, remains unchanged.
Close monitoringLast week, the government had lifted supply restrictions on commercial LPG.
Follow West Asia war LIVEDrop in consumptionUsually, non-domestic or commercial LPG accounts for about 13% of overall LPG sales by public sector OMCs.
This coincides with the commercial LPG supply restrictions in place, as well as the higher interim booking timelines for LPG.
In an indication of an improvement in the LPG supply situation with the four-month-long West Asia conflict at a probable end, public sector oil-marketing companies (OMCs) on Wednesday (July 1, 2026) cut the prices of commercial LPG cylinders by ₹183.5 and that of the 5 kg free trade LPG (FTL) cylinders by ₹13. This was the first reduction in the price of commercial LPG in 2026 after the rates were hiked by ₹1,345 per refill in four tranches since March 7.
However, there was no immediate relief for households as the price of domestic LPG, which was increased in two tranches by almost ₹90, remains unchanged.
The OMCs also cut the price of aviation turbine fuel for domestic carriers by ₹5 per litre.
Close monitoring
Last week, the government had lifted supply restrictions on commercial LPG.
Speaking to The Hindu, Prashant Vashisht, senior vice-president and co-group head of corporate sector ratings at ICRA, said the opening of the Strait of Hormuz should help ease supplies of LPG provided there are no more flare-ups. He added that price pressures could alleviate further with the Gulf re-emerging as a procurement avenue.
“[Before the conflict], we were heavily reliant on the Gulf for our LPG requirements. Amid the conflict, increased supplies came from the U.S. and Australia, which are a bit far, and meant longer transit,” he said.
Sukhmal Jain, former director (marketing) at Bharat Petroleum, told The Hindu that while the immediate risk originating from the conflict may have moderated, it would be premature to infer that “risks have disappeared completely”.
“While recent developments have helped stabilise crude prices, markets continue to closely monitor the situation because any disruption in production, shipping routes, insurance costs or logistics can quickly influence global energy prices,” he said.
Latest prices
After Wednesday’s revision, the price of a 19kg LPG cylinder in Delhi, which serves as a benchmark for prices in the country, was down by ₹183.5 to ₹2,930; in Mumbai it was ₹2,885.5 (down ₹182), in Kolkata ₹3081.5 (down ₹174), and in Chennai ₹3,106 (down ₹177).
The ‘Chhotu’ FTL cylinder refills, primarily catering to migrant workers, are now available at ₹808.5 in Delhi.
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Drop in consumption
Usually, non-domestic or commercial LPG accounts for about 13% of overall LPG sales by public sector OMCs.
According to the latest provisional data of the Petroleum Planning and Analysis Cell for June 2026, the overall consumption of LPG, domestic and commercial combined, declined 16.7% from the comparable period last year. This coincides with the commercial LPG supply restrictions in place, as well as the higher interim booking timelines for LPG.
Separately, privately owned OMC, Nayara Energy, which operates more than 7,000 pumps across the country, reduced the price of petrol and diesel by ₹5 and ₹3 per litre respectively. It had hiked fuel prices by the same amount at the peak of the conflict on March 26.
