Indian Oil, HPCL, BPCL in focus as commercial LPG cylinders price slashed by ₹7; check details

Shares of oil marketing companies (OMCs) are in focus on Saturday, February 1, as prices of commercial LPG (liquefied petroleum gas) have been reduced ahead of the announcement of the Union Budget 2025.

As a part of the monthly rate revision exercise, OMCs have cut the prices of commercial LPG cylinders by ₹7, but prices of domestic cylinders meant for households and individual use have not been changed.

Following the annoucement, shares of HPCL, BPCL and Indian Oil rose more than 1% repectively on National Stock Exchange in morning trade.

The Indian stock markets are open for trading on Saturday, February 1, as Finance Minister Nirmala Sitharaman presents the Union Budget for FY 2025-26. According to an NSE circular, trading will follow the standard schedule from 9.15 am to 3.30 pm.

This is the second consecutive month of rate cut for commercial cylinders In December. In January, prices of commercial cylinders were reduced by ₹14.5 after five straight months of price hike. Prices were raised by ₹16.5 in December 2024, ₹62 in November, ₹48.5 in October, ₹39 in September and ₹6.5 in August (Delhi prices) as crude oil prices spiralled globally due to geopolitical concerns.

The rate cut could benefit commercial establishments operating in the hospitality and services sector like hotels, restaurants, cloud kitchens, etc.

In Delhi, the new price of a 19 kg commercial LPG gas cylinder will decrease by ₹7 to ₹1,797, effective February 1. Notably, LPG prices vary from state to state due to local taxes and transportation costs.

In December 2024, OMCs raised the prices for commercial LPG cylinders by ₹62 due to a sharp jump in crude oil prices.

Oil marketing companies' key expectation

Oil companies in India sell LPG at a subsidised rate, leading to big losses for them. In Budget 2024, no relief was given for these losses due to subsidies. It’s expected that Budget 2025 might offer compensation, which would help companies like Indian Oil, HPCL, and BPCL if subsidies increase.