With the new month came a small but significant financial relief for many businesses across India. On December 1, 2025, state-run oil marketing companies implemented their scheduled monthly revision and announced a ₹10 cut in the price of 19 kg commercial LPG cylinders.
This second consecutive monthly reduction comes as a welcome development for thousands of commercial consumers, especially those in the hospitality, catering, and food service industries, who rely heavily on LPG for daily operations. While the price of commercial LPG was lowered, domestic LPG (14.2 kg) remained unchanged, underscoring a clear divide in the pricing strategy for different user segments.
Commercial LPG Price Cut: Key Changes from December 1, 2025
The commercial LPG price revision is part of the monthly fuel price cycle carried out by Indian oil companies. This time, the 19 kg commercial cylinder saw a flat reduction of ₹10 across major cities.
Updated 19 Kg Commercial LPG Prices (City-wise)
| City | New Price (₹) | Old Price (₹) | Change (₹) |
| Delhi | 1,580.50 | 1,590.50 | -10.00 |
| Kolkata | 1,684.00 | 1,694.00 | -10.00 |
| Mumbai | 1,531.50 | 1,542.00 | -10.50 |
| Chennai | 1,739.50 | 1,750.00 | -10.50 |
Observation:
Mumbai offers the lowest price for commercial LPG among the four metros.
Chennai has the highest rate, indicating higher local taxes and distribution costs.
This revision follows a ₹5 cut on November 1 and offsets the ₹15.50 hike implemented in October. Since April 2025, there have been at least six cuts, totaling a cumulative reduction of ₹223 per cylinder.
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Impact on Commercial Sectors Like Hospitality and Food Services
The 19 kg LPG cylinder is primarily used by:
- Restaurants and cafés
- Hotels and resorts
- Caterers and cloud kitchens
- Fast-food stalls and food trucks
In these sectors, LPG usage can range from a few to dozens of cylinders per month. A ₹10 price cut per cylinder, although modest, can translate into significant savings over time for high-volume users. This is particularly vital at a time when businesses are navigating rising input costs, labour expenses, and inflationary pressure.
Lower fuel costs also mean a potential reduction in menu prices or improved profitability for small and medium food businesses.
Suggested Read: Commercial LPG Gas Cylinder
Domestic LPG Prices (14.2 Kg) Remain Unchanged
While commercial LPG users received some relief, household consumers did not benefit from this revision. Prices of the standard 14.2 kg domestic cylinder were left unchanged, continuing a trend seen in recent months.
Current Domestic LPG Prices (December 2025)
| City | Domestic Price (₹) |
| Delhi | 853.00 |
| Kolkata | 879.00 |
| Mumbai | 852.50 |
| Chennai | 868.50 |
These prices have remained static since April 2025, following a ₹50 hike earlier that month. Domestic LPG, often subsidized for eligible consumers, is more politically sensitive and typically revised less frequently compared to commercial LPG.
How LPG Prices Are Determined in India
The pricing of LPG in India is not government-controlled in real-time but is influenced by a variety of domestic and international factors. Prices are revised monthly by oil marketing companies, including:
- Indian Oil Corporation (IOC)
- Bharat Petroleum Corporation Limited (BPCL)
- Hindustan Petroleum Corporation Limited (HPCL)
Key Determinants of LPG Prices
| Factor | Description |
| Global LPG Benchmarks | Prices reflect fluctuations in the international LPG market rates |
| Rupee-Dollar Exchange Rate | Since LPG is largely imported, a weaker rupee increases costs |
| Crude Oil Prices | Impacted indirectly, as LPG is a byproduct of crude oil |
| Transport & Bottling Costs | Includes local logistics, bottling plant expenses, and distribution |
| Customs and Port Charges | Taxes and fees incurred at ports during LPG imports |
| Dealer Commissions | Added to the final price passed on to end users |
| Local Taxes (VAT) | Varies by state, causing city-wise price differences |
Due to this dynamic model, commercial LPG prices fluctuate more freely, while domestic prices are often subsidized or politically managed.
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Contrast: Jet Fuel Prices Continue to Rise
While commercial LPG users received relief, airline operators faced higher costs as Aviation Turbine Fuel (ATF) prices were hiked by 5.4% for the third month in a row.
ATF Price Hike (Delhi)
| Month | ATF Rate (₹/kl) | Change (%) |
| December 2025 | 99,676.77 | +5.4% |
| November 2025 | 94,969.01 | +1% |
| October 2025 | 93,092.37 | +3.3% |
Fuel accounts for nearly 40% of operating costs for airlines, so this hike could translate into higher airfares and further squeeze carrier margins.
Suggested Read: LPG Full Form
Petrol and Diesel Prices Remain Frozen
In contrast to LPG and ATF, petrol and diesel prices have remained unchanged since March 2024, when a ₹2/litre reduction was implemented. There have been no adjustments since then.
Current Petrol & Diesel Prices (Delhi)
| Fuel Type | Rate (₹/litre) |
| Petrol | 94.72 |
| Diesel | 87.62 |
This pricing stability is politically driven and not reflective of monthly fluctuations in the global oil market.
LPG Cylinder Types and Market Segments
Different types of LPG cylinders are designed for distinct segments of consumers.
LPG Cylinder Segments
| Cylinder Size | Used For |
| 2 Kg (Munna) | Small households, roadside vendors |
| 5 Kg | Backup cooking for households |
| 14.2 Kg | Primary household use |
| 19 Kg | Commercial kitchens, restaurants |
| 47.5 Kg | Industrial canteens, large hotels |
| 425 Kg (Jumbo) | Large-scale industrial use |
The 19 kg cylinder is the standard for non-subsidized, commercial use and is therefore subject to frequent pricing changes based on global market volatility.
Previous News: LPG Gas Cylinder Price May Decrease in 2026
Conclusion: What This Means for Commercial Users
The ₹10 price cut in 19 kg LPG cylinders might seem small at first glance, but for commercial kitchens and food service providers, it adds up. Businesses using multiple cylinders per day will see a notable reduction in monthly fuel expenses, improving their cost-efficiency.
However, the non-revision of domestic LPG prices reflects a cautious stance by oil companies or the government in terms of broader consumer impact.
Key Takeaways:
- Commercial LPG: ₹10 cut across major cities
- Domestic LPG: No price change
- ATF: Increased for the 3rd consecutive month
- Petrol/Diesel: Prices have remained frozen since March 2024
For now, the fuel pricing landscape shows divergence, with commercial relief, aviation stress, and household price neutrality. As global markets remain volatile, Indian consumers, both households and businesses, should stay prepared for more such monthly adjustments.
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