Despite hope fading with the US-Iran war and the subsequent rises in energy prices, Indian state-owned oil marketing companies (OMCs) have effectively reduced the LPG prices by ₹200 with effect from August 1, 2026. This price cut is currently only for commercial, 19kg LPG cylinders, bringing relief to thousands of hotels, restaurants, dhabas and caterers across the country. However, rates for the standard 14.2kg domestic household cylinders remain unchanged so far.
Revised Commercial LPG Rates Across Major Metro Cities
This reduction has marked the second consecutive monthly rate reduction for commercial cylinders, following the price cuts made in July earlier. Before this, the government had hiked commercial LPG rates due to supply chain constraints. Under the revised pricing structure, a 19kg commercial cylinder in Delhi has been reduced by ₹202 to cost ₹2,738, while in Kolkata, prices have dropped by ₹209 to reach ₹2,872.
Factors Driving the Fuel Price Adjustment
The downward revision comes at a time when global supply chain pressures finally easing after alternative procurement routes to secure LPG and oil supplies have helped stabilize domestic inventory levels. Along with that, the Petroleum Ministry has restored industrial and commercial LPG supply allocations to pre-crisis levels, withdrawing emergency quota caps. All the while, domestic LPG cylinders have had steady retail prices to shield customers from retail inflation.
