On Wednesday, the price of jet fuel, also known as aviation turbine fuel (ATF), saw a significant drop of nearly 6%. The cut came after four consecutive monthly hikes starting in July, bringing down the price of ATF in the state capital to ₹ 1,11,344.92 per kiloliter from ₹ 1,18,199.17, according to a notification by the state’s fuel retailers.
The recent price adjustment followed a series of hikes, with the latest on October 1 raising rates by ₹5,779.84/kl or 5.1%. Notably, there was a sharp increase of 14.1% or ₹13,911.07/kl on September 1 and an 8.5% increase of ₹7,728.38/kl on August 1. Overall, ATF prices soared to a record ₹29,391.08/cl during these gains. This reduction in jet fuel prices, which account for 40% of an airline’s operating costs, offers some relief to cash-strapped airlines.
In contrast, commercial LPG (LPG) rates saw a significant increase by ₹101.5 per 19kg cylinder, in line with international standards. However, the price of domestic LPG used in domestic kitchens remained unchanged at ₹903 per 14.2 kg cylinder.
Commercial LPG, used in establishments such as hotels and restaurants, now costs ₹ 1,833 in Delhi and ₹ 1,785.50 in Mumbai after the recent hike. This is the second monthly increase in a row, with a significant increase of ₹209 per 19kg bottle on October 1.
These price adjustments are influenced by the Saudi contract price (CP), the benchmark used to set the price of LPG, which has increased due to rising oil prices and oversupply concerns. Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise cooking gas and ATF prices on the 1st day of every month based on the average international price of the previous month.
It is important to note that gasoline and diesel prices remained unchanged for a record 19th consecutive month. In Delhi, petrol costs ₹96.72 per liter while diesel costs ₹89.62 per litre. Although state-run fuel retailers are expected to adjust petrol and diesel prices daily based on the 15-day moving average of benchmark international fuel prices, the last price change took place on May 22. The change followed the government’s cut in excise duty to provide relief. consumers during the sharp rise in international oil prices.