Commercial LPG Cylinder’s Price Reduced by Rs 24, Effective from June 1; ATF Price Lowered by 3%
Recent LPG Price Change Excludes Household Cylinders
The most recent price revision does not impact the cost of domestic LPG cylinders used for home cooking, which will remain the same. While the decrease in commercial LPG prices is relatively modest, it provides some financial relief to businesses across the country. Effective June 1, 2025, the price of 19 kg commercial LPG cylinders has been reduced by Rs 24, setting the new price at Rs 1,723.50. This follows a previous price drop of Rs 41 on April 1. These regular updates in pricing are influenced by changes in international crude oil prices and the broader market landscape.
Impact of LPG Consumption in India
The recent price change does not apply to domestic LPG cylinders meant for household cooking, which remain unaffected. Despite the modest reduction in commercial LPG prices, it offers some economic relief to enterprises across the nation. It’s important to note that LPG prices in India vary by state, subject to local taxes and transportation expenses. Approximately 90% of the nation’s LPG usage is for household cooking, with the remaining 10% allocated for commercial, industrial, and automotive uses.
Link Between Natural Gas Pricing and Crude Oil
India’s pricing mechanism for locally produced natural gas is tied to crude oil prices, calculated at 10% of the average price of the Indian crude basket. In May 2025, the average crude price dropped to $64.5 per barrel, marking the lowest level in over three years. If prices remain around $65 per barrel, oil marketing companies are expected to see a reduction in their LPG-related losses by approximately 45% in FY26.
Surge in Domestic LPG Usage
The usage of domestic LPG has seen a significant increase over the past ten years, with the number of consumers doubling. As of April 1, 2025, there are about 33 crore LPG users in India.
Jet Fuel Prices Cut for Third Consecutive Month
The cost of jet fuel, also known as Aviation Turbine Fuel (ATF), was reduced by nearly 3% on Sunday, marking a third consecutive monthly decline in line with decreasing international benchmark prices. In Delhi, which hosts one of India’s busiest airports, ATF prices were lowered by Rs 2,414.25 per kilolitre (2.82%), bringing the new price to Rs 83,072.55 per kilolitre, as reported by state-run fuel retailers. This latest reduction follows a 4.4% decrease (Rs 3,954.38 per kl) on May 1 and a larger 6.15% cut (Rs 5,870.54 per kl) on April 1. Overall, these decreases have now more than offset previous price increases experienced earlier this year.
Impact on Commercial Airlines
The price changes are expected to alleviate some financial strain on commercial airlines, where fuel represents nearly 40% of their operational costs. However, there have been no official comments from airlines regarding these updated prices. In Mumbai, ATF prices have fallen to Rs 77,602.73 per kl from Rs 79,855.59, while in Chennai and Kolkata, prices were reduced to Rs 86,103.25 and Rs 86,052.57 per kl, respectively.
