Hotels, restaurants and small businesses have received a major relief from July 1. However, households will have to wait. Oil marketing companies (OMCs) have reduced the price of a 19 kg commercial LPG cylinder by Rs 183.50, reversing months of steep hikes due to geopolitical tensions and rising global energy prices. The revised rates, which are part of the monthly fuel price revision, came into effect from Tuesday. However, domestic LPG cylinders used in homes will continue to be sold at the existing prices.

This new change marks the first reduction in commercial LPG prices this year. It comes after commercial users faced a series of price increases over the past few months as supply concerns related to the fighting in the Middle East disrupted the global LPG market.

How much cheaper is commercial LPG now?
After this reduction, the price of a 19 kg commercial LPG cylinder in Delhi now stands at ₹2,930, down from ₹3,113.50.

This reduction is expected to reduce the operating costs of businesses that rely heavily on commercial LPG, such as restaurants, hotels, roadside eateries and catering services.

Meanwhile, private fuel retailer Nayara Energy has reduced the price of petrol by Rs 5 per litre and diesel by Rs 3 per litre in line with the softening of international oil prices.

No relief for domestic customers

While commercial users have reason to cheer, there will be no change in the cooking gas bills of domestic customers.

The price of a standard 14.2-kg domestic LPG cylinder is the same across the country. Oil companies revise LPG prices on the first of every month, but domestic rates are often influenced by international fuel prices as well as major government policies.

Commercial LPG price cut: Who benefits?

This price reduction is expected to provide immediate relief to commercial spaces that use multiple cylinders each month. Lower fuel costs could ease pressure on operating expenses for hotels, restaurants, bakeries, cloud kitchens, and other food businesses.

However, the wait continues for households. Since domestic LPG prices will remain the same, the monthly cooking gas bill for millions of families will remain the same despite the new commercial price change.

PC: ABPLive