Commercial LPG Prices Slashed by Rs 183.50 as Government Restores Supplies Post-Iran Crisis

In a major relief for commercial and industrial consumers, oil marketing companies have slashed the price of a 19-kg commercial LPG cylinder by Rs 183.50. The revised rates, which come into effect on July 1, follow the government’s decision to remove all sectoral restrictions on Non-Domestic Packed LPG supplies as regional tensions in West Asia ease.

Following the latest price cut, a commercial cylinder in Delhi will now cost Rs 2,930, down from the previous price of Rs 3,113.50. Oil marketing companies have also lowered the price of 5-kg Free Trade LPG (FTL) cylinders by Rs 13, bringing the retail price in Delhi down to Rs 808.50. However, prices for domestic LPG cylinders remain unchanged.

Supply Restoration Eases Market Pressures

The price reduction comes on the heels of the Ministry of Petroleum completely restoring LPG supply to levels prevailing prior to the West Asia crisis.

During the peak of the conflict involving Iran, global energy markets faced severe disruptions. To safeguard the domestic market, the Indian government had previously invoked the Essential Commodities Act, mandates that required C3-C4 hydrocarbon streams to be used exclusively for LPG production, diverting them away from petrochemical industries. Bulk LPG supplies, which had been completely suspended at the onset of the crisis, were relaxed to 50% in June before being fully restored this month.

A Welcome Downturn After Meteoric Rises

The price drop marks a significant shift for commercial users who have endured months of soaring energy costs. Before the conflict erupted, a 19-kg commercial cylinder cost approximately Rs 1,814, but supply anxieties eventually drove prices past the Rs 3,100 mark.

While commercial sectors receive relief this month, domestic households are still absorbing earlier hikes; in June, the price of a 14.2-kg domestic cylinder was raised by Rs 29, bringing the retail cost in Delhi to Rs 942.