Can the price of LPG domestic gas cylinder decrease?
After the stopping of the Iran-US war and the opening of the Strait of Hormuz, government oil and gas marketing companies have reduced the price of commercial LPG cylinder by Rs 183.5 and the price of Aviation Turbine Fuel (ATF) by Rs 5 per liter on Wednesday, July 1. Let us tell you that during the tension in the Middle East, the prices of raw commercial LPG gas and crude oil had increased to record levels across the world. Now after the war stopped and Hormuz opened, it has started decreasing.
Both commercial LPG and ATF are deregulated fuels. Their prices are changed on the first day of every month on the basis of international benchmarks. During the Iran-America war, their prices in India increased four times. During this period, commercial LPG prices increased by Rs 1,373 per cylinder. At present, the price of 19 kg commercial LPG cylinder in Delhi has reduced by Rs 183.5 to Rs 2,930. In Mumbai it is Rs 2,884, in Kolkata it is Rs 3,072 and in Chennai it is Rs 3,099.5.
There is no reduction in the rates of domestic LPG cylinders
Government oil and gas marketing companies have also reduced the prices of 5-kg Free Trade LPG (FTL) cylinders. This cylinder is mostly used by migrant labourers, roadside food shops and street vendors. This too has been reduced by Rs 13. Its price is Rs 808.5. However, there has still been no reduction in the rate of 14.2 KG domestic LPG cylinder. Its price now remains near Rs 942. However, due to the manner in which the prices of commercial free trade LPG have come down, it is expected that the rates of domestic gas cylinders will also come down soon this month.
Headlines
- Domestic LPG cylinder prices were increased twice in the year 2026. There was a total increase of Rs 89
- Now there is a possibility of reduction in the price of commercial gas cylinder and decline in the rate of domestic LPG.
- LPG gas cylinder and oil supply system improved after Iran-America war stopped
Domestic gas cylinder rates will rise in July itself, these are 5 signs
War over, Hormuz open: The Strait of Hormuz has been opened after the Iran-US war stopped. The movement of ships carrying gas and oil stuck in the sea has started. India also imports a large part of LPG and oil through this route. At present, the pressure on the supply chain has reduced. In view of this, the Government of India lifted the ban on commercial LPG use only last week. Its use has been allowed as before. In such a situation, due to adequate availability of LPG, the prices of domestic LPG cylinders may come down in the coming time.
Reduction in commercial gas cylinder rates: The rise and fall in commercial gas cylinder prices reflects the trends in the international LPG market and import costs. The cheapness of commercial cylinders may be an indication that the pressure in the global LPG market has reduced. In such a situation, due to fall in the prices of LPG in the international market, there may be a decline in the prices of domestic gas in India also.
Import of LPG from America:India’s state oil companies (IOC, HPCL, and BPCL) had made a deal to import 22 lakh tonnes of LPG every year from America in the year 2025. News agency Reuters quoted Kpler as saying that India’s LPG import from America is expected to cross the record level of 1 million tonnes in June 2026.
In May 2026, India imported 648,300 tonnes of LPG from America. This clearly means that America will continue to import LPG as per the deal with India. Besides, with the opening of the Strait of Hormuz, LPG import from Gulf cities has also improved. In such a situation, due to adequate availability of LPG in the country, domestic gas prices will decrease instead of increasing.
Qatar’s LPG supply: Qatar is among the world’s leading gas and LPG exporters. India also imports energy resources from Qatar on a large scale. Even amidst the Iran-America war, Qatar had taken steps towards maintaining smooth energy supply to India. During this period, ships carrying LPG were transported by Qatar to Kandla and Mundra ports of Gujarat by adopting safe route. But now after the opening of Hormuz, India’s import cost and supply related risks may reduce. Its effect can also be seen in the prices of domestic LPG cylinders.
Use of electric cooking appliances: The demand for electricity in India has increased rapidly. According to a report published in Down to Earth, in the year 2026, the peak demand for electricity has increased rapidly from April 1, it increased from 214.9 GW to a two-year high of 257.1 GW on April 25. Then on May 21, 2026, it reached a record level of 270.8 GW. Electricity demand increased by 26 percent in just 50 days. At the same time, in the year 2025, the demand for electricity in India had reached a maximum of 242.49 GW (Gigawatt). That means the maximum demand has increased by approximately 28 gigawatts this year as compared to last year.
Electronic appliances like induction, air fryer used for cooking are also an important reason behind the increasing demand for electricity in India. According to a survey by a private agency, about 5 percent of the families in India use electric cooking appliances in some form or the other.
If it is assumed that India has approximately 147 crore population. If there are 5 members in every family, there will be a total of 31 crore families in the country. If 5 percent families are counted among these 31 crores, then this number will be 1.5 to 1.6 crores. Apparently 1.5 to 1.6 crore families are now using electric cooking appliances at some level or the other.
These figures might have increased further amid the LPG supply crisis during the Iran-America war. This clearly means that people’s dependence on LPG gas cylinders has reduced. In such a situation, due to less use of LPG in homes, there will not be much pressure on the stock available with the government. This may result in a reduction in the prices of domestic LPG cylinders.
Domestic LPG gas price increased twice in 2026
Domestic LPG gas prices will increase twice in India during the year 2026. The first increase was made to Rs 60 on March 7, 2026. Then, the second increase of Rs 29 was made on 7 June 2026. Overall this year there was an increase of Rs 89 per cylinder. In the first increase, the price of LPG domestic gas had increased from Rs 853 to around Rs 913. At the same time, in the second increase, the price of domestic LPG cylinder had reached Rs 942.
