Commercial LPG price cut by ₹183.50/cylinder; 5-kg domestic cylinder cheaper by ₹13

Commercial LPG prices were on Wednesday cut by ₹183.50 per 19-kg cylinder, the first reduction this year, after easing tensions in West Asia improved fuel supplies and prompted the government to roll back emergency restrictions.

Following the revision, a 19-kg commercial LPG cylinder will cost ₹2,930, down from the record high of ₹3,113 charged last month, according to oil marketing companies.

Commercial LPG prices are revised on the first day of every month based on average international benchmark rates in the previous month.

The reduction comes after a series of hikes in commercial LPG prices triggered by the West Asia conflict, which had disrupted global energy supplies and pushed up crude oil prices.

Oil companies also reduced the price of the 5-kg domestic LPG cylinder by ₹13, bringing its retail price down to ₹808.

However, the price of the standard 14.2-kg domestic LPG cylinder, used by households, remained unchanged at ₹942.

The domestic cylinder price was last increased by ₹29 on June 7.

The price cut follows the government's decision to restore supplies of non-domestic packed LPG to pre-crisis levels.

The Ministry of Petroleum and Natural Gas has also withdrawn sector-wise restrictions imposed during the West Asia conflict and partially eased the suspension on bulk LPG supplies.

Commercial and industrial consumers will now be allowed to receive up to 50% of their pre-crisis bulk LPG consumption.

According to the ministry, the decision was taken after domestic LPG availability improved due to higher indigenous production and the expected arrival of imported LPG cargoes.

During the West Asia crisis, the government had invoked the Essential Commodities Act to direct that C3-C4 hydrocarbon streams be used exclusively for LPG production. The move diverted feedstock away from petrochemical and other downstream industries to ensure adequate domestic LPG supplies.

With the reopening of the Strait of Hormuz and improvement in the supply outlook, the government has now decided to reduce the diversion of C3-C4 streams to the LPG pool and permit higher allocation to petrochemical and other critical sectors.