LPG Prices From January 1, 2025: 19KG Cylinder Prices Cut By Rs 14.5-16, First Time In 6 Months; Latest Rates

LPG Prices: Leading oil marketing companies (OMC) celebrated the new year 2025 by announcing massive good news for Indian residents. The largest OMC, Indian Oil Corporation (IOCL) has trimmed LPG prices of 19KG cylinders for the first time in 6 months, by Rs 14.5 to Rs 16 across metro cities with effect from January 1, 2025.

The city of Kolkata saw the most cuts in LPG prices; however, the cheapest LPG is being sold in Mumbai compared to Kolkata, Chennai, and Mumbai. Here are the latest prices of 19kg LPG cylinders from January 1, 2025.

LPG Prices In 19Kg:

LPG Prices In Delhi: In the national capital, LPG prices are cut by Rs 14.5 per 19kg cylinder to Rs 1,804 from January 1, 2025, compared to Rs 1,818.5 in December 2024. From July 2024 to December 2024, 19kg LPG was hiked by a whopping Rs 172.5 per cylinder.

LPG Prices In Mumbai: In January 2025, the 19 kg LPG price was also reduced by Rs 15 to Rs 1756 per cylinder compared to the price of Rs 1771 per cylinder in the previous month. From July to December of 2024, the LPG price in 19kg cylinders was increased by Rs 171 per cylinder.

LPG Prices In Kolkata: In the city of Kolkata, LPG price per 19 kg cylinder recorded the most cut to the tune of Rs 16 to Rs 1911 in January 2025, compared to Rs 1927 in December 2024. From July to December of 2024, 19 kg LPG Prices were raised by Rs 173.

LPG Prices In Chennai: Starting from January 1st, per LPG cylinder in 19kg is now available at Rs 1966 in Chennai, which is lowered by Rs 14.5 compared to Rs 1980.5 in December 2024. In Chennai, LPG prices are expensive compared to the above-mentioned cities. The prices were increased by Rs 171 in the city from July to December 2024.

That being said, the latest decline in LPG prices comes after hike of five-consecutive month, which started from August 2024 after LPG prices were brought down by Rs 30 to 31 in these metro cities in July 2024.

LPG Prices In 14.2KG Cylinder:

Notably, leading OMCs have LPG prices in 14.2kg cylinders unchanged since August 1, 2024. In December 2024 as well, the 14.2 kg cylinder price is at Rs 803 in Delhi, Rs 829 in Kolkata, Rs 802.50 in Mumbai, and Rs 818.50 in Chennai.

LPG Sales And Impact On OMCs:

According to ICICI Securities, H1FY25 results for the three Oil Marketing Companies (OMCs) - IOCL, BPCL and HPCL - were less than stellar with accumulated LPG losses, weaker GRMs and inventory losses dragging down earnings sharply vs. H1FY24's high base.

The brokerage highlighted that the past few months have seen a lot of volatility around crude prices, GRMs and even in marketing margins (the trend, albeit, has been up for marketing margins). Coupled with LPG losses and inventory impact denting Q2 results, stocks of the three OMCs have taken a hit over the last three months, declining 23.7/19.1/14% for IOCL/BPCL/HPCL.

ICICI Securities expects LPG losses of Rs 175 billion in H1 to be replicated in H2 but shall be in line with previous years. That is why, the brokerage believes that there are enough reasons to warrant optimism around H2FY25 prospects for the OMCs, despite the potential INR 300-330bn of under-recovery losses related to LPG over FY25E (aggregate INR 175bn loss in H1FY25).

It also believes the probability of at least partial LPG compensation coming through by end-FY25E is reasonably high, given previous years' trends.

At present, Indian Oil-backed Indane LPG is sold and delivered in eight different pack sizes. The 5 kg and 14.2 kg cylinders are largely meant for domestic use and comprise almost 90% of all gas distributed, while the 19 kg, 47.5 kg and 425 kg Jumbo cylinders are marketed for industrial and commercial consumption.

Indane has now become one of the largest packed LPG brands in the world, with IndianOil as the second-largest marketer of LPG globally. Indane is a Consumer Superbrand as conferred by the Superbrands Council of India. It is a brand synonymous with safety, reliability, and convenience.