LPG cylinder price cut: Impact on domestic customers and new rates
3 minute readPublished: Friday, September 5, 2025 at 3:59 am
LPG Cylinder Price Cuts: Commercial Sector Benefits While Domestic Users Receive Subsidy
Government-owned oil marketing companies have implemented a price reduction for commercial LPG cylinders, effective September 1, 2025. The price of the 19 kg commercial cylinders has decreased by 51.50. This follows previous reductions of 33.50 in August and 58.50 in July, reversing the trend of rising commercial cylinder costs. For example, the price of a 19 kg cylinder is now 1,580.
Domestic cylinder prices, however, remain unchanged. Despite this, the government has announced a subsidy for beneficiaries of the Ujjwala Yojana. This subsidy, up to 300 per cylinder, will be provided during the 2025-26 financial year. A budget of approximately 12,000 crore has been allocated to support this subsidy program, aiming to ensure affordable energy access for economically weaker sections of society.
The price cut is expected to benefit the commercial sector, including hotels, restaurants, and grocery merchants, by reducing their operating costs. This could potentially lead to increased profits or allow businesses to offer discounts to consumers. Domestic users will continue to pay the same price for their cylinders, but the Ujjwala scheme subsidy will provide financial relief to eligible low-income families.
The continuous price cuts and subsidies may impact the financial performance of oil marketing companies. To mitigate this, the central government has approved financial assistance of 30,000 crore to the three public OMCs to support their ability to provide affordable LPG.
BNN's Perspective:
The government's approach appears to be a balancing act. While the commercial sector benefits from immediate cost savings, the focus on subsidies for the Ujjwala Yojana beneficiaries demonstrates a commitment to supporting vulnerable households. The financial assistance provided to the OMCs is a necessary step to ensure the sustainability of this strategy. The long-term impact will depend on the government's ability to manage the financial burden of these measures while maintaining affordable energy access for all.
Keywords: LPG cylinder, price cut, commercial cylinder, domestic cylinder, subsidy, Ujjwala Yojana, oil marketing companies, OMCs, financial assistance, affordable energy, government policy, economic impact