Jet Fuel Prices Cut by Nearly 6 per cent, LPG Rates Hiked

01 Nov 2023 CW Team

Jet fuel prices, known as Aviation Turbine Fuel (ATF), were reduced by nearly 6 per cent, providing relief to financially strained airlines. The cut comes after four consecutive monthly increases since July. In contrast, commercial cooking gas (LPG) rates were raised by a significant Rs 101.5 per 19-kg cylinder to align with international benchmarks. However, domestic LPG prices, used for household cooking, remained unchanged at Rs 903 per 14.2-kg cylinder.

ATF prices were lowered by Rs 6,854.25, or 5.79 per cent, in the national capital, following several rounds of price hikes over the past few months. This reduction in jet fuel costs is expected to alleviate the financial burden on airlines, where fuel accounts for a substantial portion of operating expenses.

On the other hand, commercial LPG prices, used in establishments like hotels and restaurants, increased by Rs 101.50. This marks the second consecutive monthly price hike. The price of a 19-kg commercial LPG cylinder now stands at Rs 1,833 in the national capital and Rs 1,785.50 in Mumbai.

The price changes are in response to international benchmarks and trends in crude oil prices, particularly the Saudi contract price (CP), which influences LPG pricing.

While petrol and diesel prices remained unchanged for a record 19th consecutive month, state-owned fuel retailers have been mandated to adjust these prices daily based on a 15-day rolling average of international benchmark fuel prices. However, the last adjustment occurred on May 22, when the government reduced excise duty to ease the impact of rising retail rates driven by international oil price increases.

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