Key Points
- Commercial LPG cylinder prices increased by ₹6 across major cities, effective March 1, 2025.
- Domestic LPG cylinder prices remain unchanged since August 2024.
- Current domestic LPG prices: ₹803 in Delhi, ₹829 in Kolkata, ₹802.50 in Mumbai, and ₹818.50 in Chennai.
- Commercial LPG cylinder rates now stand at ₹1,803 in Delhi, ₹1,913 in Kolkata, ₹1,755.50 in Mumbai, and ₹1,965 in Chennai.
- Oil marketing companies (OMCs) face mounting financial strain due to unchanged domestic LPG rates.
New Delhi: rch 1, 2025, oil marketing companies (OMCs) have revised the prices of commercial LPG cylinders across India. The price of a 19-kg commercial cylinder has been increased by ₹6 after two consecutive months of reductions. The new rates are as follows:
- Delhi: ₹1,803 (up from ₹1,797)
- Kolkata: ₹1,913 (up from ₹1,907)
- Mumbai: ₹1,755.50 (up from ₹1,749.50)
- Chennai: ₹1,965 (up from ₹1,959.50)
This modest hike comes after a reduction of up to ₹7 per cylinder in February and January 2025. Despite the increase, this is one of the smallest price hikes for commercial cylinders on March 1 in recent years.
Domestic LPG Cylinder Prices Remain Unchanged
While commercial prices saw an uptick, domestic LPG cylinder rates remain steady for the 12th consecutive month. The last change to domestic LPG prices occurred on August 30, 2024, when the government slashed prices by ₹200 per cylinder to provide relief to households.
As of March 1, 2025:
- Delhi: ₹803
- Kolkata: ₹829
- Mumbai: ₹802.50
- Chennai: ₹818.50
The unchanged domestic rates are a relief for households but continue to strain OMCs financially due to mounting under-recoveries.
Impact on Oil Marketing Companies
The decision to keep domestic LPG prices unchanged is taking a toll on OMCs like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL). These companies have been absorbing losses due to government-imposed price freezes on domestic cylinders while grappling with rising crude oil costs and a lack of subsidies.
Reports indicate that cumulative under-recoveries for OMCs could exceed ₹400 billion for FY25 if no adjustments or subsidies are introduced. This financial strain impacts their cash flow and profitability.
Why the Price Hike Matters
The increase in commercial LPG prices will directly affect businesses like restaurants, hotels, and street food vendors that rely heavily on these cylinders. While the hike is relatively small compared to previous years, it adds to operational costs for these sectors.
On the other hand, stable domestic LPG prices provide some relief to households amid rising inflation but could lead to long-term challenges for OMCs if subsidies or price adjustments are not implemented soon.
Looking Ahead
As Holi approaches later this month, there is speculation that the government may announce a reduction in domestic LPG prices as a goodwill gesture ahead of the festive season. However, no official confirmation has been made yet.
For now:
- Households can continue to benefit from stable domestic gas prices.
- Businesses using commercial cylinders will need to adjust to the minor price increase.
- OMCs await government intervention to address their mounting financial challenges.
The next price revision is expected on April 1, 2025. All eyes will be on whether the government introduces measures to ease the financial burden on OMCs while balancing consumer interests.
