Oil marketing companies have slashed the price of commercial LPG cylinders by ₹7 which comes as a relief for businesses ahead of the Union Budget 2025. From 1st of February, 2025 the adjusted rate of a 19 kg cylinder in Delhi will be ₹1,797.
The nation is waiting for the Union Budget, which may impact prices as happy only before for all time Modi ji’s government’s Union Budget address by Finance Minister Nirmala Sitharaman will address this in the Parliament today at 11 AM.
Rates Effective 1st February
The new prices are applicable at 19 kg commercial LPG cylinders and are mainly used in hotels, restaurants, cafes and other businesses. In Delhi, the cost of a commerical LPG cylinder has been cut down to ₹1,797, giving a relief of ₹7. This cut is likely to provide some relief to businesses whose operations are heavily dependent on LPG.
Why Were the Rates Revised?
The change in prices of LPG cylinders is also done as per the regular process based on the prices of crude oil globally and other market factors. The prices of commercial LPG had gone up by ₹62 in December 2024, which made operational cost expensive for hotels and restaurants. This current drop of ₹7, while small, will relieve a small amount of financial pressure on those businesses.
Domestic LPG Cylinder Prices Remain Unchanged
If you are a household looking for a reduction in price of domestic LPG cylinders (14.2 kg), you will not find any news here. Domestic LPG Cylinders Unchanged: Oil Companies Households use domestic LPG primarily for cooking and for them the rates will remain unchanged, for the time being.
Impact on Businesses
The LPG price reduction will help businesses like hotels, restaurants and cafes that use LPG for their day-to-day operations. Lower operating costs might allow these businesses to pass savings on to customers. Although the cut is small, it is significant for businesses that use large amounts of LPG.
It would be relevant to mention that LPG prices vary from state to state and is based on local tax and transportation cost.
Union Budget 2025: LPG Price Hike
The price revision coincides with the tabling of the Union Budget 2025. On 29th January 2023, Finance Minister Nirmala Sitharaman will unveil her eighth budget in the Union Fiscal Year and is expected to deliver relief to the taxpayers and push growth in the economy.
Though small, the cut in LPG prices is a happy move for business before the budget announcement. It is a delicate balance of market dynamics and the needs of different sectors that the government is trying to strike.