Oil marketing companies have implemented significant price cuts for commercial LPG cylinders effective July 1, 2026, marking the first reduction in commercial LPG prices in 2026 after months of consecutive increases. The reduction comes as fuel supplies improve after the West Asia crisis, providing relief to businesses that rely on commercial cooking gas. In Delhi, the 19-kg commercial LPG cylinder price was reduced by ₹183.50, bringing its new price to ₹2,930 from the previous ₹3,113.50. Lucknow also witnessed the same reduction of ₹183.50, with the price falling from ₹3,236 to ₹3,052.50. Kolkata commercial cylinders have been reduced by ₹174, now priced at ₹3,081.50 down from ₹3,255.50, while Patna commercial cylinders are now fixed at ₹3,227. Chandigarh commercial cylinders are priced at ₹2,954.50, and Patna domestic cylinders will continue to cost ₹1,031.50. This reverses the upward trend that had seen commercial LPG rates witness successive increases from January to June 2026, with the steepest hike of ₹993 on May 1 following the US-Iran conflict outbreak on February 28. The revision is expected to bring significant relief for small businesses including food stall and dhaba owners, as well as hotels, restaurants, and catering services that rely heavily on commercial gas supplies.
While commercial LPG users benefit from significant price reductions, consumers using 5-kg Free Trade LPG (FTL) cylinders face an increase of ₹11 effective from June 1, 2026. In Delhi, the new price stands at ₹821.50, up from ₹810.50 earlier. The price hike comes as oil marketing companies revised prices upwards as part of their monthly review linked to movements in international crude oil and natural gas prices. Unlike conventional 14.2-kg domestic LPG cylinders, 5-kg FTL cylinders are primarily designed for customers requiring smaller quantities of cooking gas and are commonly used by tea stalls, roadside eateries, small food businesses, temporary kitchens, travellers and consumers who frequently relocate. The increase is expected to affect tea stalls, snack vendors, small restaurants and other micro businesses that rely on smaller LPG cylinders for their day-to-day operations, adding to their overall cost burden amid higher input expenses.
Aviation turbine fuel (ATF) prices have been reduced by ₹5 per litre, bringing domestic airline fuel costs to approximately ₹110 per litre. Private fuel retailer Nayara Energy has also rolled back price increases introduced during the West Asia conflict, reducing petrol prices by ₹5 per litre and diesel by ₹3 per litre across its 7,000-odd retail outlets. Both commercial LPG and ATF are deregulated fuels and their prices are revised on the first of every month in line with international benchmark rates. The 5-kg Free Trade LPG (FTL) cylinder, commonly used by migrant workers, roadside eateries and street vendors, has also become cheaper by ₹13 and now costs ₹808.5.
The price cut follows the government's decision to restore commercial LPG supplies to pre-crisis levels and withdraw emergency sector-wise restrictions. According to the Ministry of Petroleum and Natural Gas, the ministry has withdrawn sector-wise restrictions imposed during the West Asia conflict and partially eased the suspension on bulk LPG supplies. Commercial and industrial consumers will now be allowed to receive up to 50% of their pre-crisis bulk LPG consumption. The decision was taken after domestic LPG availability improved due to higher indigenous production and the expected arrival of imported LPG cargoes. During the West Asia crisis, the government had invoked the Essential Commodities Act to direct that C3-C4 hydrocarbon streams be used exclusively for LPG production, diverting feedstock away from petrochemical and other downstream industries to ensure adequate domestic LPG supplies. With the reopening of the Strait of Hormuz and improvement in the supply outlook, the government has now decided to reduce the diversion of C3-C4 streams to the LPG pool and permit higher allocation to petrochemical and other critical sectors.
While commercial users have benefited from the latest revision, domestic consumers will continue to pay the existing prices for 14.2-kg LPG cylinders with no change in rates. In Delhi, the domestic LPG cylinder price remains unchanged at ₹942, while Lucknow consumers will continue to pay ₹979.50, Kolkata rates stay at ₹968, and Patna domestic cylinders will continue to cost ₹1,031.50. The booking interval of 25 days for urban consumers and up to 45 days for rural consumers continues to remain in place from July 1. The 5-kg domestic LPG cylinder price was reduced by ₹13, bringing its retail price down to ₹808, while the standard domestic cylinder price was last increased by ₹29 on June 7. With no revision in household cooking gas prices, domestic consumers will neither receive additional relief nor face any increase in their monthly kitchen expenses. CNG prices remain at ₹83.09 per kg, while petrol is priced at ₹102.12 per litre and diesel at ₹95.2 per litre across state-run oil marketing companies.
