Public sector oil-marketing companies (OMCs) cut commercial LPG cylinder prices by ₹183.5,first price cut of 2026. This follows steep ₹1,345 increase through four hikes since March 7. Now,a 19kg LPG cylinder in Delhi costs ₹2,930. Major cities see similar drops.
In Mumbai, price fell ₹182 to ₹2,885.5. Kolkata saw a ₹174 drop to ₹3,081.5. Chennai's price decreased ₹177 to ₹3,106. Price of 5 kg free trade LPG (FTL) cylinders also cut by ₹13,now ₹808.5 in Delhi. But households won't benefit — domestic LPG prices hold steady after a ₹90 hike in two stages.
Price cut comes as supply constraints ease,linked to conflict in West Asia. Last week,Indian government lifted supply restrictions on commercial LPG . Experts say opening of Strait of Hormuz could boost supplies, if no further escalations in region.
“While recent developments have helped stabilize crude prices,markets continue to closely monitor situation because any disruption in production,shipping routes,insurance costs or logistics can quickly influence global energy prices,”said Sukhmal Jain,a former director at Bharat Petroleum .
Senior vice-president at ICRA,Gulf region has been key supplier for India’s LPG needs. During conflict,India turned to U.S . and Australia for more supplies,leading to longer transit times. “Before conflict, we were heavily reliant on Gulf for our LPG requirements,” he added.
Despite price cuts,LPG consumption in India declined. Latest data from Petroleum Planning and Analysis Cell shows a 16.7% drop in LPG consumption for June 2026 compared to last year. Blame supply restrictions and longer booking timelines .
In related move, privately-owned OMC Nayara Energy also slashed fuel prices, cutting petrol and diesel by ₹5 and ₹3 per litre,respectively. This follows earlier price hike when fuel prices rose by same amounts during conflict peak on March 26.
As West Asia's situation evolves, experts remain wary. Immediate risks may have eased,but any flare-ups could disrupt supply chains,impact prices. Market will be closely watched as developments unfold…
