Commercial LPG Price Cut: Businesses across India have received welcome relief as state-owned oil marketing companies (OMCs) have reduced the prices of 19-kg commercial LPG cylinders by more than ₹200 in key cities, including Delhi and Kolkata, effective August 1, 2026.
The latest revision is expected to benefit restaurants, hotels, food stalls, caterers and other commercial establishments that rely heavily on LPG for their day-to-day operations.
Commercial LPG Rates Reduced in Delhi and Kolkata
Following the latest revision, the price of a 19-kg commercial LPG cylinder in Delhi has been reduced by ₹202, bringing the new price down to ₹2,728, compared to ₹2,930 in July.
In Kolkata, businesses will see an even bigger reduction of ₹209, with the revised price falling to ₹2,872.50.
This marks the second consecutive monthly price cut, offering partial relief after commercial LPG prices reached record highs earlier this year.
Why Have Commercial LPG Prices Fallen?
The reduction comes after months of volatility in global energy markets driven by geopolitical tensions in West Asia.
Commercial LPG prices had surged sharply between February and June 2026, climbing by nearly ₹1,373 per cylinder—from ₹1,740.50 to an all-time high of ₹3,113.50. The steep increase was largely attributed to concerns over fuel supply disruptions caused by regional conflicts, including the Iran crisis and uncertainty surrounding major international shipping routes.
As geopolitical tensions have gradually eased, oil marketing companies have been able to lower commercial LPG prices for two consecutive months.
India Strengthens LPG Supply Security
The recent fluctuations have also prompted India to strengthen its energy security strategy.
To reduce dependence on a limited number of suppliers, the government has expanded LPG imports from alternative sources, including the United States. At the same time, efforts are underway to enhance the country’s National Gas Grid and City Gas Distribution (CGD) network, helping reduce long-term dependence on commercial LPG.
Supply concerns had intensified earlier due to potential disruptions along critical maritime routes such as the Strait of Hormuz and the Bab al-Mandab Strait, both of which are vital for global energy transportation.
No Change in Domestic LPG Cylinder Prices
While commercial users have received significant relief, household consumers will see no change in LPG prices.
The rates for 14.2-kg domestic LPG cylinders, commonly used in homes, remain unchanged in cities including Delhi and Kolkata.
ATF Prices Move Higher
In contrast to the reduction in commercial LPG prices, the aviation sector is facing higher fuel costs.
Oil companies have increased the price of Aviation Turbine Fuel (ATF) by approximately ₹5 per litre for domestic airlines, adding to operating expenses for the aviation industry.
The latest fuel price revisions highlight the differing trends across energy products, with commercial LPG becoming cheaper while aviation fuel continues to witness upward pressure.