Jet fuel, known as Aviation Turbine Fuel (ATF), saw a 5 percent increase in its price on Sunday, marking the fourth consecutive monthly hike since July. Additionally, rates for commercial cooking gas, or LPG, were raised significantly by Rs 209 per 19-kg cylinder, aligning with the upward trend observed in international benchmarks.
However, it’s worth noting that the price of domestic LPG, commonly used in household kitchens for cooking purposes, remained unchanged at Rs 903 per 14.2-kg cylinder.
The price hike for Aviation Turbine Fuel (ATF) amounted to Rs 5,779.84 per kilolitre, or 5.1 percent, in the national capital, bringing it to Rs 118,199.17 per kl from the previous Rs 112,419.33. This increase follows the steepest-ever 14.1 percent increase (Rs 13,911.07 per kl) implemented on September 1, as well as an 8.5 percent increase (Rs 7,728.38 per kl) on August 1.
These continuous price increases in jet fuel, which constitutes a substantial portion of an airline’s operational expenses (40 percent), will further strain already financially stressed airlines.
On July 1, ATF prices had already risen by 1.65 percent or Rs 1,476.79 per kl. In the span of these four increases, ATF prices have witnessed a record rise of Rs 29,391.08 per kl.
Simultaneously, oil companies increased the price of commercial LPG, typically used in establishments such as hotels and restaurants, by Rs 209.
As a result of these adjustments, a 19-kg commercial LPG cylinder will now cost Rs 1,731.50 in the national capital and Rs 1,684 in Mumbai. This price hike reverses most of the Rs 157.5 per cylinder reduction in commercial LPG prices implemented on September 1, along with the Rs 100 reduction on August 1.
The Saudi contract price (CP), a benchmark for LPG pricing, has risen due to the recent surge in crude oil prices stemming from supply concerns.
It’s worth mentioning that domestic LPG rates, which were reduced by Rs 200 per 14.2-kg cylinder on August 30, remained unchanged.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) typically adjust cooking gas and ATF prices on the 1st of every month, based on the average international prices in the previous month.
However, petrol and diesel prices have remained unchanged for a record 18th consecutive month. Petrol costs Rs 96.72 per litre in the national capital, while diesel is priced at Rs 89.62 per litre.
State-owned fuel retailers are meant to adjust petrol and diesel prices daily, based on a 15-day rolling average of benchmark international fuel prices. However, they have refrained from doing so since April 6, 2022. The last price change occurred on May 22 when the government reduced excise duty to provide relief to consumers in response to a surge in international oil prices, which had led to higher retail rates.