On Friday, aviation turbine fuel (ATF) prices increased by 3%, while commercial LPG cylinder prices saw a reduction of Rs 33.50. These adjustments are in response to shifts in international benchmark rates.
Jet Fuel Prices Soar
The price of jet fuel (ATF) jumped by Rs 2,677.88 per kilolitre (2.9%), reaching Rs 92,021.93 per kl in the national capital. This increase follows a substantial 7.5% (Rs 6,271.5 per kl) hike last month, which significantly impacts airline operating costs.
This recent surge comes after three consecutive monthly reductions starting in April, which had brought prices down by a total of Rs 12,239.17 per kl. However, the subsequent increases, totaling Rs 8,949.38 per kl, have effectively erased almost three-quarters of those previous gains. The rise in ATF prices aligns with a global uptick in oil rates, attributed to ongoing geopolitical tensions and trade disputes.
This will add to the financial strain on commercial airlines, as fuel accounts for nearly 40% of their operational expenses. As of now, airlines have not released statements regarding the impact of this price hike.
City-Specific ATF Prices
- Mumbai: Prices increased to Rs 86,077.14 per kl from Rs 83,549.23.
- Chennai: Prices rose to Rs 95,512.26 per kl.
- Kolkata: Prices went up to Rs 95,164.90 per kl.
It’s important to note that ATF rates vary across cities due to local taxes like VAT.
Commercial LPG Sees Further Reductions
In contrast, oil firms have lowered the price of commercial LPG by Rs 33.50 per 19-kg cylinder. A commercial LPG cylinder in the national capital now costs Rs 1,631.50.
This marks the fifth consecutive reduction in commercial LPG rates since April, totaling a cut of Rs 171.5 per bottle. Previous reductions include:
- July 1: Rs 58.5 per 19-kg cylinder
- June 1: Rs 24
- May 1: Rs 14.50
- April 1: Rs 41 per cylinder
While international oil prices have been volatile, benchmark LPG rates have softened due to lower demand during the summer months. Similar to ATF, LPG prices also differ by state based on local taxes.
Domestic LPG and Fuel Prices Remain Stable
The price of cooking gas for domestic households remains unchanged at Rs 853 per 14.2-kg cylinder, with the last hike of Rs 50 per cylinder occurring in April.
