In yet another indication of the de-escalation in the West Asian conflict, the PSU oil marketing companies (PMCs) on Wednesday reduced the price of Commercial LPG by ₹183.50 per 19-kg cylinder, 5-kg LPG cylinder by ₹13 and domestic jet fuel prices by ₹5 per litre.The Prices of domestic 14.2-kg LPG cylinders have been left unchanged at ₹942 per cylinder.Today’s development is the second indication that the conflict in West Asia is on the wane. On June 29th, the government removed restrictions placed on sale of diesel and petrol from retail outlets (ROs) operated by PSU OMCs, including the cap of 200 litres per day per vehicle on diesel, with effect from July 1.The price of a 19-kg commercial liquefied petroleum gas (LPG) cylinder was reduced by ₹183.50 per cylinder bringing down the cost in Delhi to ₹2,930 per cylinder.Similarly, the price of a 5-kg free trade LPG (FTL) was cut by ₹13 a cylinder to ₹808.50 per cylinder in the national capital, which would come as a much needed respite for migrant labourers.The price of aviation turbine fuel (ATF) for domestic airlines was cut by ₹5 to ₹110 per litre in Delhi. The OMCs revise jet fuel and commercial LPG prices every month based on the average international price in the preceding month and foreign exchange rates.Last month (June 7th), the OMCs had raised the price of domestic 14.2 kg LPG cylinder by ₹29 per cylinder. Before this, domestic LPG prices were raised by ₹60 per cylinder on March 7th.The under recovery from selling LPG to domestic consumers below market rate had risen to around ₹700 per 14.2 kg cylinder as of June 4th from roughly ₹650 per cylinder in May-end. Even for the March 7, 2026 LPG cylinder price hike of ₹60, the government absorbed Rs 74 per cylinder.Rising under recoveries also forced the government to slash the subsidy under PM Ujjwala Yojna (PMUY) from ₹2,700 per year for nine cylinders to ₹1,200 a year for 4 14.2 kg domestic LPG cylinders.The PSU PMCs had also raised the retail prices of petrol and diesel four times since May 15, 2026. Overall, the prices of the two auto fuels were raised in the range of ₹7.50 per litres. This was the first hike in petrol and diesel prices since April 2022.Following the ₹3 per litre hike in retail prices of diesel and petrol in early May, the Oil Ministry had said that OMC losses declined from ₹1,000 per day to ₹750 crore daily. This loss later came down to around ₹650 crore per day as the OMCs raised prices of the two fuels twice by 90 paise each during the same month.Published on July 1, 2026