3 LPG Price Cuts in a Row! You Won’t Believe the New Cost!

In a move that promises relief to millions, cooking gas (LPG) prices have been reduced for the third consecutive month across India. Major cities, including Delhi, Mumbai, Chennai, and Kolkata, are witnessing significant price drops, easing financial pressures on households and businesses struggling with rising costs. This latest cut follows similar reductions in March and April, signaling a potential shift influenced by global oil trends and government efforts to stabilize essential commodity prices.

Latest Price Updates: What You’ll Pay Now

Effective June 1, oil marketing companies have slashed commercial LPG cylinder prices. The revised rates for key cities are as follows:

• Delhi: ₹1,676 per cylinder (down by ₹69.50)
• Mumbai: ₹1,629 per cylinder (down by ₹69.50)
• Chennai: ₹1,841.50 per cylinder (down by ₹69.50)
• Kolkata: ₹1,789.50 per cylinder (down by ₹69.50)

This uniform reduction of ₹69.50 marks the third consecutive monthly price cut. Earlier, reductions of ₹19 in March and ₹30.50 in April had already provided some respite, particularly for small businesses reliant on LPG for daily operations. The cumulative effect of these reductions is expected to lower operational costs for eateries, hotels, and street vendors, who depend heavily on commercial cylinders.

Why Are Prices Falling?

While oil companies like Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) have not officially explained the reasons behind the cuts, industry experts point to multiple factors. Global crude oil prices, which have fluctuated in recent months, play a crucial role. A dip in international rates often leads to lower domestic LPG prices. Additionally, government taxation policies and efforts to balance supply and demand may have contributed to this trend.

Notably, the Pradhan Mantri Ujjwala Yojana (PMUY), a flagship initiative launched in 2016, continues to make LPG accessible to low-income households. By providing subsidized cylinders and free connections to over 100 million families, the scheme has not only promoted cleaner cooking fuel but also shielded vulnerable groups from sharp price fluctuations.

Monthly Revisions: How Pricing Works

LPG prices in India are revised on the first day of each month by state-owned oil companies. These adjustments reflect shifts in international markets, exchange rates, and domestic policies. While households using subsidized cylinders under PMUY are somewhat shielded from abrupt changes, commercial users—who pay market-driven rates—are more directly affected by these monthly updates.

The recent reductions, however, stand out for their consistency. Analysts suggest that stabilizing global oil output and reduced geopolitical tensions could be contributing to the downward trend. Yet, uncertainties remain, as events like supply disruptions or currency fluctuations could quickly reverse these gains.

Political Backlash Amid Relief

Despite the positive news, the central government faces criticism from opposition parties and consumer rights groups. Critics argue that while the cuts are welcome, the overall affordability of LPG remains a concern, especially for middle- and lower-income families. Over the past two years, prices had surged dramatically—reaching record highs during the pandemic—and the recent reductions only partially offset those spikes.

Opposition leaders have also pointed out the cascading effect of LPG prices on everyday essentials. When fuel becomes expensive, transportation and production costs for goods rise, indirectly increasing the prices of vegetables, grains, and other staples. They demand more stable, long-term solutions rather than incremental monthly adjustments.

Looking Ahead: Will the Trend Continue?

Consumers and businesses are cautiously optimistic. The consecutive price drops offer temporary relief, but many worry about a potential reversal if global oil prices rebound. For now, the focus remains on whether the government will introduce additional measures, such as tax cuts or enhanced subsidies, to sustain affordability.

The Ujjwala Yojana, while impactful, still faces challenges in ensuring sustained LPG usage among beneficiaries due to recurring refill costs. Expanding subsidy coverage or revising eligibility criteria could further ease the burden on poorer households.

Conclusion

Three months of falling LPG prices have brought a much-needed breather to Indian kitchens and businesses. While the trend aligns with global market dynamics, the role of policy interventions cannot be overlooked. As debates over fuel pricing and accessibility continue, the common citizen remains caught between fleeting relief and the need for lasting solutions. All eyes are now on July’s revision, which will determine whether this downward trajectory holds—or becomes another short-lived victory.

For now, families and entrepreneurs can celebrate a slight easing of their budgets, even as they brace for the uncertainties of an ever-changing energy landscape.