India has seen a welcome reduction in aviation turbine fuel (ATF) and commercial LPG prices this Monday, offering some relief to airlines and businesses
relying heavily on these fuels. The latest adjustment follows a series of price hikes earlier in the year, driven by rising global oil rates amid geopolitical tensions. The cost of ATF was reduced by 1.4 per cent, a decrease of Rs 1,308.41 per kilolitre, bringing the price down to Rs 90,713.52 per kilolitre in Delhi, one of the country’s busiest aviation hubs. This marks a pause after consecutive monthly price hikes starting July 1, which cumulatively increased prices by Rs 8,949.38 per kilolitre. The drop in jet fuel costs is important as fuel accounts for nearly 40 per cent of an airline’s operating expenses. While airlines have yet to comment on how this reduction might affect their fares or profitability, the easing of fuel costs is expected to provide some breathing room for the sector. Prices for ATF vary by city due to differences in local taxes such as VAT. Mumbai saw a cut to Rs 84,832.83 per kilolitre from Rs 86,077.14, whereas Chennai and Kolkata experienced slight price increases, with rates at Rs 94,151.96 and Rs 93,886.18 per kilolitre, respectively. Commercial LPG Prices Continue To Fall Commercial LPG cylinders, widely used by hotels and restaurants, have also become more affordable. The price for a 19-kg cylinder was reduced by Rs 51.50 to Rs 1,580 in the national capital, marking the sixth straight reduction since April. Over these six price cuts, commercial LPG rates have fallen by Rs 223 per cylinder. The sustained decline in LPG prices is attributed to reduced demand during the summer months and softer global LPG benchmarks. Stable Domestic Cooking Gas And Petrol-Diesel Rates Despite reductions in commercial LPG, the price of domestic cooking gas (14.2-kg cylinders) remains steady at Rs 853 per cylinder. This rate had been increased by Rs 50 in April and has remained unchanged since. Meanwhile, petrol and diesel prices in India continue to be held steady. Petrol is currently priced at Rs 94.72 per litre in Delhi, and diesel costs Rs 87.62 per litre, with no recent changes since a Rs 2 per litre cut in March last year. The state-run oil firms, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), adjust fuel prices on the first of each month, factoring in global fuel benchmarks and currency fluctuations.
