The government has recently introduced a significant reduction in the prices of petrol, diesel, and gas cylinders, bringing much-needed relief to the public. This decision aims to ease the burden on household budgets and offer respite from rising inflation. The adjustments include a decrease in fuel prices and a price cut on commercial gas cylinders, helping both common citizens and businesses.
Latest Reduction in Petrol, Diesel, and Gas Cylinder Rates
In February 2025, the government announced a price cut on petrol and diesel by ₹ 1 and ₹ 4 per liter, respectively. Additionally, the cost of a 19 kg commercial gas cylinder has been slashed by ₹ 7. However, the price of the 14.2 kg domestic LPG cylinder remains unchanged.
Detailed Overview of Price Adjustments
| Product | Old Price (₹) | New Price (₹) | Reduction (₹) |
|---|---|---|---|
| Petrol | 95.77 | 94.77 | 1 |
| Diesel | 91.67 | 87.67 | 4 |
| Commercial Gas Cylinder (19kg) | 1804 | 1797 | 7 |
| Domestic Gas Cylinder (14.2kg) | 855 | 855 | No change |
Reasons Behind the Fuel Price Drop
The decline in petrol and diesel prices is primarily driven by a drop in global crude oil rates. Additionally, the government has adjusted taxes, including excise duty and VAT, to provide further relief to consumers. These measures collectively aim to reduce fuel costs and curb inflation.
Relief in Gas Cylinder Costs
For the second consecutive month, the price of commercial gas cylinders has seen a reduction. As of February 2025, the cost of a 19 kg commercial LPG cylinder in Delhi has been lowered to ₹ 1797. However, the price of the domestic 14.2 kg LPG cylinder remains stable at ₹ 855 for the past seven months.
Gas Cylinder Prices in Major Cities
| City | 19 kg Commercial LPG (₹) | 14.2 kg Domestic LPG (₹) |
|---|---|---|
| Delhi | 1797 | 855 |
| Mumbai | 1749.5 | 855 |
| Kolkata | 1907 | 855 |
| Chennai | 1959.5 | 855 |
Impact of Price Reduction
Impact on Household Budget
The reduction in petrol and diesel prices is likely to lower transportation costs, which could also result in decreased prices of essential goods. This will positively affect household budgets.
Benefit to the Business Sector
Businesses, particularly in the hospitality sector such as hotels and restaurants, will benefit from the reduced cost of commercial gas cylinders. This will lower operational costs and may even lead to price cuts for consumers.
Positive Effect on Inflation
A decrease in fuel prices can help control inflation by reducing the cost of transporting goods, ultimately stabilizing the prices of daily essentials.
Additional Key Points
State-Wise Fuel Price Variation
Petrol and diesel prices differ across states due to varying VAT rates. Consumers should check their state’s specific rates for accurate pricing.
Daily Pricing Mechanism
Since June 2017, India has adopted a daily pricing system for fuel, meaning petrol and diesel rates are revised every day based on global market conditions.
Current Fuel Prices in Major Cities (As of 18 February 2025)
| City | Petrol (₹/Liter) | Diesel (₹/Liter) |
|---|---|---|
| Delhi | 94.77 | 87.67 |
| Mumbai | 102.86 | 88.94 |
| Chennai | 96.97 | 88.71 |
| Kolkata | 95.70 | 87.15 |
Useful Tips for Consumers
Plan a Monthly Budget
Preparing a monthly budget can help manage expenses on fuel and gas more efficiently.
Focus on Energy Efficiency
Using energy-saving appliances and driving fuel-efficient vehicles can significantly reduce fuel consumption.
Utilize Government Subsidies
Schemes like the Pradhan Mantri Ujjwala Yojana offer subsidies on LPG cylinders. Eligible consumers should take advantage of such benefits.
Disclaimer
This article is based on official government announcements and publicly available data. Fuel and gas cylinder prices are subject to periodic revisions. Readers are advised to stay updated with local price changes. Notably, the reported ₹ 200 subsidy on domestic gas cylinders is not yet implemented and remains speculative at this stage. This article is intended solely for informational purposes.