Cooking gas prices could decrease as local natural gas prices hit a two-year low.

The government has lowered the price of domestically produced natural gas to $6.41 per million British thermal units for June, down from $6.93 in May, according to a notification from the oil ministry on Saturday. This marks the lowest price since April 2023.

This reduction in the administered price could lead to decreased costs for cooking gas, fertilizers, and power, as natural gas is a crucial input in these sectors.

The administered price mechanism for natural gas applies to companies such as Oil and Natural Gas Corp. Ltd. and Oil India Ltd.

At the end of March 31, the government had raised the local natural gas price to $6.75 for the six-month period from April to September 2025. Following this, the government increased the price of liquefied petroleum gas (LPG) cylinders by ₹50 each shortly after on April 7.

This price reduction has been prompted by a recent decline in global energy prices. India’s policy stipulates that the natural gas produced domestically should be priced at 10% of the crude basket. The average cost of the Indian crude basket dropped to $64.5 a barrel in May 2025, the lowest level in over three years.

Despite its volatility, the price of Brent Crude, which serves as the main benchmark for India’s oil imports, has fallen nearly 20% in 2025 so far.