Commercial LPG Prices Cut By Rs 1.5 Per Cylinder, ATF Prices Down By 4%

The aviation turbine fuel (ATF) price was cut by Rs 4,162.5 or 3.9 per cent in the national capital to Rs 101,993.17 per kl, price notifications of state-owned fuel retailers revealed. 

Jet fuel or ATF prices were slashed by 4 per cent on Monday, marking the third consecutive monthly reduction in prices. In contrast, the price for commercial cooking gas (LPG) was reduced marginally by Rs 1.50 per 19-kg cylinder, keeping in line with international benchmarks. 

However, the government kept the price of domestic LPG, used in household kitchens for cooking purposes, unchanged at Rs 903 per 14.2-kg cylinder, reported PTI. The aviation turbine fuel (ATF) price was cut by Rs 4,162.5 or 3.9 per cent in the national capital to Rs 101,993.17 per kl, price notifications of state-owned fuel retailers revealed. 

Earlier in November, ATF prices were slashed by nearly 6 per cent or Rs 6,854.25 per kl, and in December by 4.6 per cent or Rs 5,189.25 per kl. 

These three reductions have wiped away nearly 45 per cent of the Rs 29,391.08 per kl rate increase effective in the four monthly tranches starting July 1 last year. Jet fuel makes up for 40 per cent of an airline’s operating cost. This reduction in the prices is anticipated to ease the burden on already financially strained airlines. 

Further, oil companies also lowered the price of commercial LPG, used in hotels and restaurants, by Rs 1.50. Now, a 19-kg commercial LPG cylinder will cost Rs 1,755.50 in the national capital and Rs 1,708.50 in Mumbai. This price hike comes after a reduction of Rs 39.5 per cylinder, effective on December 22, 2023.

Notably, the state-run Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) revise cooking gas and ATF prices on the 1st of every month, based on the average global prices in the previous month. 

The earlier revision, done on December 22, was an exception. Meanwhile, petrol and diesel prices continue to be on hold for a record 21st consecutive month in a row. Currently, petrol costs Rs 96.72 per litre in the national capital, while diesel costs Rs 89.62 per litre. The state-owned fuel retailers are supposed to change fuel prices daily, on the basis of a 15-day rolling average of benchmark international fuel prices, but they haven’t done so since April 6, 2022.