LPG prices in India have been getting cheaper for the past three months, with 19 kg cylinder prices falling by Rs 79.5 from Rs 1803 in March to Rs 1723.50. Meanwhile, 14.2 kg cylinder prices have been unchanged after a Rs 50 hike in them during the month of April. Once again, Indian oil companies will revise their key product prices, including LPG, with effect from July 1, 2025. Will LPG rise or fall? And what does the current situation suggest?
LPG Prices 14.2 kg Cylinder:
14.2 kg LPG cylinder prices are unchanged after the Rs 50 hike provided on April 8, 2025. Since then, LPG prices of 14.2 kg cylinders have been at Rs 853 in Delhi, Rs 879 in Kolkata, Rs 852.50 in Mumbai, and Rs 868.50 in Chennai.
LPG Prices 19 Kg Cylinder:
However, LPG prices in 19 kg cylinders have been falling since April 2025. In June, 19 kg LPG prices were brought down by Rs 24 to Rs 25.5 across major metro cities. In Delhi, the LPG price was down by Rs 24 to Rs 1723.50 from the previous month's Rs 1747.50.
In Kolkata, the cut was steeper by Rs 25.5 to Rs 1826 in June from Rs 1851.50 in May. Additionally, in Mumbai, the 19 kg LPG price was trimmed by Rs 24.5 to Rs 1674.50 from May's Rs 1699. Also, in Chennai, the price was lowered by Rs 25 to Rs 1881 from the previous Rs 1906.
LPG prices in 19 kg have significantly plunged from March 2025. During that month, the 19 kg price stood at Rs 1803 in Delhi, at Rs 1913 in Kolkata, at Rs 1755.50 in Mumbai, and at Rs 1965 in Chennai.
From March to June 2025, LPG prices have declined by Rs 79.5 in Delhi, by Rs 87 in Kolkata, by Rs 81 in Mumbai, and by Rs 84 in Chennai.
Will LPG Prices Rise Or Fall From July 1?
Crude oil prices is a major component that impacts the change in LPG prices. During the Iran-Israel 12-day war, oil prices shot up 21-25% since end-May. Higher oil prices are seen as a key positive for OMCs that decide LPG prices along with other oil and gas-related product prices.
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Earlier, a Kotak Institutional Equities report pointed out that with windfall taxes scrapped and the likelihood of these coming back low (after the ORD Act amendment), higher oil prices are positive for upstream.
However, on Monday, June 30, Brent crude traded around $66.5 per barrel, after recording its biggest weekly losses in over two years.
As per Trading Economics data, Crude prices tumbled over 13% last week, marking the worst weekly performance since March 2023, as the Israel-Iran truce continues to hold, alleviating fears of a broader conflict that could disrupt crude flows from the region. However, Iran doubts the US-brokered ceasefire with Israel will last, warning of retaliation if strikes resume. Meanwhile, President Donald Trump suggested he might back eventual sanctions relief for Iran "if they can be peaceful." Further weighing on prices, reports indicated that OPEC+ was set to boost production by 411,000 barrels per day in August, following a similar hike already planned for July.
Hence, the trend in crude oil prices is currently volatile.
"Crude oil remained highly volatile and closed the week with significant losses-the worst weekly performance this year. De-escalation in the Middle East conflict and OPEC+'s decision to ramp up output weighed heavily on prices. Meanwhile, weak U.S. economic indicators-highlighted by GDP contraction and declining consumer activity-further dampened the demand outlook. On the supportive side, the dollar fell to a 3.5-year low, and U.S. crude stockpiles declined more than expected, offering some relief," said Rahul Kalantri, VP Commodities, Mehta Equities.
As the gas is derived from the process of refining crude oil, it is directly related to its price. Any increase in the price of crude oil is bound to affect the cost of gas production. The fluctuation in the price of crude boil in the market can directly lead to the change in the price of producing LPG, explained ShivGas on its website.
Meanwhile, JM Financial in its report said, "OMCs' auto-fuel GMM is at a) a normalized ~INR 3.5/ltr at ~USD 77/bbl Brent and b) ~INR 5.5/ltr at ~USD 73/bbl Brent (fully compensating for likely FY26 LPG under-recovery of ~INR 300bn); every USD1/bbl rise in crude price results in OMCs' auto-fuel GMM declining by ~INR 0.5/ltr. Every rise/decline in auto-fuel GMM by INR1/ltr results in an increase/decrease in OMCs book value by 0.2-0.5% per month."
At present, 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.
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