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Commercial LPG Prices Cut July 1; Domestic & Other Fuel Rates Steady Amid Supply Restoration

· · 2 min read

Commercial LPG cylinder prices saw a significant reduction from July 1, following the restoration of supplies to pre-crisis levels. Meanwhile, domestic LPG, CNG, and PNG rates remain unchanged across major Indian cities for the month.

Commercial liquefied petroleum gas (LPG) cylinder prices have been reduced across India starting July 1, offering relief to businesses. This marks the first price cut for 19 kg commercial LPG cylinders in 2026, with reductions ranging from ₹173 to ₹183.50 depending on the city. For instance, a 19 kg commercial cylinder in Delhi now costs ₹2,930, while in Mumbai it is priced at ₹2,885.50.

Domestic LPG, CNG, and PNG Rates Stable

In contrast to the commercial sector, prices for 14.2 kg domestic LPG cylinders remain unchanged for July 2026. Similarly, the rates for compressed natural gas (CNG) and piped natural gas (PNG), which last saw an increase in May, have also held steady across the country.

  • Domestic LPG (14.2 kg): Delhi ₹942, Mumbai ₹941.50, Chennai ₹957.50
  • CNG (per kg): Delhi ₹83.09, Mumbai ₹86, Chennai ₹97
  • PNG (per SCM): Delhi ₹49.59, Mumbai ₹51.50, Chennai ₹50

Supply Restoration Eases Prices

The government attributed the cut in commercial LPG prices to improved domestic production and the expectation of new imported LPG cargoes. This has allowed for the restoration of commercial LPG supplies to hotels, restaurants, and other businesses to pre-crisis levels, following concerns that arose during the West Asia conflict.

"Full supply of domestic LPG, PNG and CNG is being maintained across the country despite the West Asia conflict, which is now nearing an end," a government statement confirmed, adding that commercial LPG restrictions had been withdrawn due to eased supply concerns.

Impact of West Asia Conflict on Consumption

Despite the recent stabilization, India's overall liquefied petroleum gas consumption experienced an 8 percent year-on-year decline during the first half of 2026. This drop, from 15.95 million tonnes in H1 2025 to 14.74 million tonnes in H1 2026, was primarily due to disruptions in imports through the Strait of Hormuz caused by the West Asia conflict. The United States emerged as India's largest LPG supplier between March and June, filling the gap. May 2026 recorded the lowest monthly LPG consumption in over five years, at approximately 2.13 million tonnes, indicating the significant impact of the supply constraints.

Aviation Fuel Prices Also Reduced

In related news, aviation turbine fuel (ATF) prices were also reduced by ₹5 per litre on Wednesday, bringing the rate in Delhi to ₹110 per litre. This marks the first reduction since the conflict pushed jet fuel rates to record highs and is expected to alleviate costs for airlines operating both domestic and international routes.

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