Commercial LPG Cylinder Prices Reduced by ₹7 Ahead of Budget 2025

In a slight relief for businesses, oil marketing companies have reduced the price of 19 kg commercial LPG cylinders by ₹7 as part of their monthly price revision process. This change took effect on February 1, 2025, just hours before Finance Minister Nirmala Sitharaman is set to present the Union Budget for 2025.

This price reduction is expected to benefit commercial establishments such as hotels, restaurants, and catering services that heavily rely on LPG for their daily operations.

Revised LPG Cylinder Prices in Metro Cities

With this revision, the price of a 19 kg commercial LPG cylinder in Delhi has now been reduced to ₹1,797. Although the price cut is marginal, it comes as a welcome relief for businesses. It is worth noting that the prices of commercial LPG cylinders vary from state to state due to local taxes and transportation costs. In contrast, the prices of domestic LPG cylinders, which weigh 14.2 kg and are primarily used for household cooking, remain unchanged.

Recent Trends in LPG Price Adjustments

LPG prices are reviewed monthly based on fluctuations in global crude oil prices and other economic factors. In December 2024, oil companies increased commercial LPG cylinder prices by ₹62, putting additional financial pressure on businesses. The latest revision in February suggests a stabilizing trend in fuel prices, which could ease operating costs for businesses that depend on LPG.

Impact on Hotels, Restaurants, and Businesses

Though small, the reduction in commercial LPG prices is expected to lower expenses for restaurants, hotels, and other establishments. Some businesses may pass on these savings to consumers by maintaining stable prices for food and services. However, industry experts note that the ₹7 price cut is not significant enough to lead to a major shift in operating costs. Businesses remain vulnerable to global oil price fluctuations and possible future increases.

Budget 2025 and Its Significance

The timing of this LPG price reduction coincides with the highly anticipated Union Budget for 2025. Finance Minister Nirmala Sitharaman, who is presenting her eighth consecutive budget, is expected to announce key measures aimed at fiscal consolidation, tax relief, and economic growth. While no direct connection between the LPG price reduction and the budget has been confirmed, businesses are hopeful for further policy measures that could alleviate inflationary pressures and reduce operational costs.

Conclusion

The ₹7 reduction in commercial LPG cylinder prices is a small but positive move for businesses as they approach the Union Budget for 2025. As global energy markets continue to fluctuate, adjustments in fuel prices will remain a critical factor affecting India’s commercial sector. Businesses, particularly in the food and hospitality industry, will keep a close watch on future trends in LPG pricing and government policies that could further impact their operating costs.

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