New Delhi, Aug 1: In a big relief to restaurants, hotels, dhabas and small eateries, the government on Saturday slashed the price of 19-kg commercial LPG cylinders by over ₹200 in key metros. Domestic LPG rates for households, however, remain unchanged.
With effect from August 1, oil marketing companies have reduced commercial LPG prices in major cities. In Delhi, the price of a 19-kg commercial cylinder has been cut by ₹202. In Kolkata, the cut is ₹209. After the revision, a commercial cylinder will cost around ₹2,728 in Delhi and ₹2,872.50 in Kolkata, sources told news agency ANI.
Commercial LPG cheaper, domestic rates steady
The latest price cut marks the second straight reduction in commercial LPG rates this year. Crude oil remains elevated and supply concerns persist in West Asia. Domestic LPG prices, on the other hand, have been left unchanged for August 2026.
A 14.2-kg domestic LPG cylinder continues to retail at roughly ₹942 in Delhi, ₹968 in Kolkata, ₹941.50 in Mumbai and ₹957.50 in Chennai. The government has kept household cooking gas rates stable. It wants to shield common consumers from global market volatility.
Why the cut now?
The reduction comes as global LPG prices have eased from recent highs. The West Asia conflict had pushed prices up. Supply routes have also stabilised. India has diversified imports away from the Gulf. It has boosted purchases from the US and other sources.
Oil marketing companies had been absorbing heavy under-recoveries to shield households. They are now passing on some relief to commercial users. International pressures have moderated. Earlier in the year, commercial LPG prices had surged by over 70% in some cities. The conflict-driven spike in global energy costs had caused the rise.
Who benefits?
The price cut directly helps restaurants, dhabas and street food vendors. It also helps hotels, caterers and banquet halls. Small eateries and cloud kitchens that rely on commercial cylinders also benefit. For these businesses, even a ₹200 drop per cylinder can translate into significant monthly savings. Their consumption is high.
What to watch next
Market watchers will now look at whether domestic LPG prices are revised in the coming months. Global markets may stabilise further. Any additional relief for commercial users is also likely. This will happen if international crude and LPG prices continue to fall. The impact of the West Asia situation on shipping routes and future import costs remains a key factor.
For now, commercial users get clear cost relief. Households continue to pay unchanged rates despite earlier volatility.
