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India cuts commercial LPG, petrol and jet fuel prices as Middle East conflict eases
At the height of the war, domestic LPG production was raised by over 60% and supplies were sourced from across the globe, including US, Canada and Algeria
- PUBLISHED: Wed 1 Jul 2026, 1:41 PM
Oil marketing companies in India cut the price of 19-kg commercial LPG cylinders effective July 1, following the easing of tensions in the Arabian Gulf.
This is the first time this year that commercial LPG prices have been cut in India. But the price of cylinders for households has not been cut so far.
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The price of LPG cylinders for commercial use has been cut by Rs183.5 (about Dh7), and will now be available for between Rs2,900 (Dh112) and Rs3,100 (Dh120) in the four metros of Delhi, Mumbai, Kolkata and Chennai.
The price of aviation turbine fuel for domestic airlines has also been cut by Rs5, while those of petrol and diesel have been reduced by Rs5 and Rs3 per litre respectively.
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However, LPG prices for cylinders for homes have not been touched. According to the government, Indian households get cooking gas at the lowest prices in the world. It is cheaper than in the neighbouring countries and far below the price prevalent in the US, Canada, Australia and other developed nations.
According to the Petroleum ministry, restrictions on commercial LPG supplies were lifted following an improvement in domestic production and the expected arrival of imported LPG.
"In a major relief to industrial and commercial LPG consumers, the government has removed all sectoral restrictions on the supply of non-domestic packed LPG and restored supplies to the levels prevailing prior to the West Asia crisis," the ministry said.
At the height of the Gulf war crisis, the Indian government had invoked powers under the Essential Commodities Act, diverting feedstock from petrochemical and industrial uses for exclusive use for LPG production.
Domestic LPG production was raised by over 60 per cent and supplies were sourced from across the globe, including the US, Canada and Algeria to ensure uninterrupted supplies to millions of households.
“The prices of petroleum products in India are linked to the corresponding prices in the international market,” the Petroleum ministry had said earlier. “The government, however, continues to modulate the effective price to the consumer for domestic LPG.
Any household can buy as many cylinders as it needs at Rs 942 (Dh36.5). A PMUY (Pradhan Mantri Ujjwala Yojana) beneficiary will additionally receive the direct benefit transfer of Rs 300 a cylinder on the first four refills each year (down from nine a year).”
State-run oil marketing companies are also considering plans to build a 30-day LPG reserve to boost energy security and to prevent a crisis in the future in case of disruptions in imports especially through the Strait of Hormuz.
