Commercial LPG prices slashed by Rs 58.50; Jet Fuel cost surges 7.5% amid global tensions

In a mixed development for fuel consumers, state-owned oil marketing companies have reduced the price of 19 kg commercial LPG gas cylinders by Rs 58.50, while simultaneously hiking the price of aviation turbine fuel (ATF) by 7.5 per cent, effective July 1.

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The price cut brings the rate of a commercial LPG cylinder down to Rs 1,665 in Delhi, offering relief to hotels, restaurants, and small businesses that depend on the fuel for daily operations.

“The rate of 19 kg commercial LPG gas cylinders has been reduced by Rs 58.50, effective from today,” a company official confirmed.

This marks the second consecutive month of price reductions for commercial users. In June, prices were cut by Rs 24, following a Rs 7 drop in February and a marginal Rs 6 increase in March. In April, the cylinder was priced at Rs 1,762. 

However, there is no change in the 14.2 kg domestic LPG cylinder prices, despite growing demands for a revision. Oil firms said domestic cylinder rates remain unchanged as of now.

Approximately 90 per cent of India’s total LPG consumption is for household cooking, with only 10 per cent allocated for commercial, industrial, and transport uses. Domestic LPG prices are often held stable even when commercial prices fluctuate.

In contrast, the price of jet fuel has increased by Rs 6,271.5 per kilolitre, taking it to Rs 89,344.05 per kilolitre in the national capital. The steep hike comes after three successive price cuts in April, May, and June, which had cumulatively lowered ATF rates by nearly Rs 12,240.

The recent increase reverses nearly half of those reductions and is attributed to a rise in global crude prices, triggered by heightened geopolitical tensions following Israel’s military actions against Iran. 

Fuel costs represent nearly 40 per cent of airline operating expenses, and the latest hike is expected to exert fresh financial pressure on the aviation sector.

Meanwhile, the average price of India’s crude oil basket dropped to Rs 64.5 per barrel in May, the lowest in three years. 

Given India’s policy of linking natural gas prices to 10 per cent of this basket, oil companies expect LPG-related losses to decline by around 45 per cent in FY26, provided crude remains near current levels.

Over the past decade, domestic LPG connections in India have doubled, reaching 33 crore as of April 2025 — underscoring the vital role cooking gas plays in Indian households.