Jet Fuel Price Jumps; Commercial LPG Slips Again

04 Jul 2025 CW Team

Aviation turbine fuel (ATF) became markedly dearer on 2 July as state owned retailers raised the price by Rs 6,271.50 a kilolitre, lifting the Delhi rate to Rs 89,344.05 a kl—a 7.5 per cent jump that reverses roughly half the reductions secured since April. Mumbai now pays Rs 83,549.23 a kl, while Chennai and Kolkata face Rs 92,526.09 and Rs 92,705.74 respectively; variations reflect local VAT.

The increase follows a surge in global oil benchmarks after Israel’s recent strike on Iran and will squeeze airlines, for whom fuel accounts for about 40 per cent of operating costs. Carriers have yet to comment on any immediate fare impact.

In contrast, the price of the 19 kg commercial LPG cylinder—used in restaurants and other establishments—fell for a fourth consecutive month. Oil companies trimmed Rs 58.50 per bottle, taking Delhi’s tariff to Rs 1,665 and Mumbai’s to Rs 1,616.50. The cumulative cut since April now stands at Rs 138, a relief credited to subdued summer demand in international LPG markets.

Domestic cooking gas prices remained unchanged at Rs 853 for a 14.2 kg cylinder after a Rs 50 rise in April, and motor fuel rates have been frozen since a Rs 2 a litre reduction in March 2024. Petrol in Delhi stays at Rs 94.72 a litre and diesel at Rs 87.62.

Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum adjust ATF and LPG on the first of every month, basing revisions on the previous month’s average international prices and exchange rates.

Infrastructure Urban

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