KKN Gurugram Desk | In a significant move, oil marketing companies (OMCs) have reduced the prices of commercial LPG gas cylinders by ₹7, effective from February 1, 2025. This price revision comes amid the much-anticipated Union Budget 2025, set to be presented by Finance Minister Nirmala Sitharaman today.
While commercial LPG cylinders (19 kg) have seen a price drop, domestic LPG cylinder prices remain unchanged. The reduction is expected to benefit businesses, particularly in the hospitality sector, including hotels and restaurants that rely heavily on LPG for daily operations.
Revised Commercial LPG Cylinder Prices (Effective February 1, 2025)
The latest LPG cylinder price revision has been implemented across major metro cities, with the following new rates:
📍 City-wise LPG Gas Cylinder Prices (19 kg Commercial Cylinder)
| City | New Price (₹) | Price Reduction (₹) |
|---|---|---|
| New Delhi | 1,797 | -7 |
| Kolkata | 1,907 | -7 |
| Mumbai | 1,749 | -7 |
| Chennai | 1,959 | -7 |
These revised rates are applicable from February 1, 2025, under the monthly price revision system, which is determined by global crude oil prices, local taxes, and transportation costs.
Why Have Commercial LPG Prices Been Revised?
🔹 Monthly Rate Revision Practice
The LPG gas cylinder price revision is part of the oil companies’ monthly rate adjustment policy, which takes into account:
✔️ Fluctuations in global crude oil prices
✔️ Changes in refining and transportation costs
✔️ Local taxation policies in different states
🔹 Trend in LPG Price Adjustments
📌 December 2024: LPG prices for commercial cylinders were increased by ₹62, affecting restaurants, hotels, and businesses.
📌 February 2025: A minor reduction of ₹7 per cylinder has been announced to provide some relief to businesses.
While this cut is marginal, it is expected to slightly ease operational costs for businesses, particularly in the food and hospitality sector.
No Change in Domestic LPG Cylinder Prices
Despite the revision in commercial LPG prices, domestic LPG cylinder prices remain unchanged. The 14.2 kg domestic LPG cylinder, used for household cooking purposes, has not witnessed any price cut or hike in February’s rate revision.
✔️ What remains unchanged?
🔹 No reduction in domestic LPG cylinder prices
🔹 Households will continue paying the same amount as before
However, there have been speculations that government subsidies or policy changes might be announced in the Union Budget 2025, which could impact future LPG prices for domestic consumers.
Impact of Commercial LPG Price Reduction on Businesses
The ₹7 price cut on commercial LPG cylinders will have a marginal but positive impact on businesses that rely on LPG for daily operations.
Key Sectors Benefiting from the Price Cut
✅ Hotels & Restaurants: Reduced LPG prices may slightly lower operational costs, benefiting small and medium-sized restaurants.
✅ Catering Services: Businesses in the catering industry will experience lower fuel costs for bulk food preparation.
✅ Food Processing Units: Industries that use LPG for cooking and processing food may benefit from minor cost savings.
Will Businesses Pass on the Savings to Consumers?
Some businesses may choose to pass on the benefits of the reduced LPG prices to their customers in the form of lower menu prices or reduced service charges. However, the reduction is minimal, so the impact on final consumer prices may be negligible.
LPG Price Trends & Future Expectations
📈 Recent Trends in LPG Prices
- December 2024: ₹62 price hike for commercial cylinders
- January 2025: No major change
- February 2025: ₹7 price reduction
📉 What Can We Expect in the Coming Months?
- Fluctuations in crude oil prices will directly impact future LPG price adjustments.
- Global demand and supply conditions may influence further revisions.
- Government policy changes in the Union Budget 2025 may affect domestic LPG pricing.
Many experts believe that if crude oil prices stabilize, further price reductions for both domestic and commercial LPG could be expected in the coming months.
LPG Price Revision Coincides with Union Budget 2025
The latest LPG price cut comes just before the presentation of Union Budget 2025 by Finance Minister Nirmala Sitharaman in Parliament.
📌 Key Expectations from the Budget 2025 Related to LPG:
✔️ Possible LPG subsidy announcements for households and lower-income groups.
✔️ Government measures to control inflation in fuel prices.
✔️ Fiscal policies that may impact energy pricing and taxation.
The government’s fiscal strategy will play a crucial role in determining whether further relief measures for LPG consumers will be introduced.
While the ₹7 price reduction in commercial LPG cylinders may seem insignificant, it does provide minor relief to businesses, especially hotels and restaurants that use LPG daily.
🔹 Pros:
✔️ Helps reduce operational costs for commercial establishments.
✔️ Provides stability in pricing after the previous ₹62 hike in December 2024.
🔹 Cons:
❌ Reduction is too small to have a major impact on business profitability.
❌ No change in domestic LPG prices, keeping household costs unchanged.
With the Union Budget 2025 expected to address economic concerns, all eyes are now on potential policy decisions that could further impact LPG pricing and consumer benefits.
📢 For real-time updates on LPG price changes, fuel policies, and Union Budget 2025 highlights, stay connected with KKNLive.com! 🚀
