Jet fuel, also known as Aviation Turbine Fuel (ATF), saw a significant price reduction on Tuesday, dropping by 6.3%, marking its lowest level this year. In contrast, the price of commercial LPG used in hotels and restaurants was increased by Rs 48.5 per 19-kg cylinder in the latest monthly price revision, following trends in international oil prices.
Jet Fuel Prices Hit 2024 Low
ATF prices were reduced by Rs 5,883 per kilolitre, or 6.29%, bringing the price down to Rs 87,597.22 per kilolitre in the national capital. This marks the second price cut in a month, following a reduction on September 1, when prices were slashed by Rs 4,495.5 per kilolitre (4.58%). In Mumbai, jet fuel prices were lowered to Rs 81,866.13 per kilolitre, down from Rs 87,432.78.
The significant drop in ATF prices is a relief for airlines, as fuel costs account for nearly 40% of their operating expenses. The price cut is expected to ease some of the financial pressure on the aviation industry.
Commercial LPG Prices See a Rs 48.5 Hike
While jet fuel prices were cut, the price of commercial LPG used in businesses such as hotels and restaurants saw a hike of Rs 48.5 per 19-kg cylinder. This brings the cost of commercial LPG to Rs 1,740 per cylinder in Delhi. This marks the third consecutive monthly increase, following hikes of Rs 6.5 in August and Rs 39 in September.
In total, the three rounds of price increases have added Rs 94 to the cost of a commercial LPG cylinder, partially offsetting the reductions seen in previous months. The latest prices for a 19-kg cylinder are Rs 1,692.50 in Mumbai, Rs 1,850.50 in Kolkata, and Rs 1,903 in Chennai.
Domestic LPG and Fuel Prices Unchanged
The price of domestic LPG cylinders, used in households for cooking, remained unchanged at Rs 803 per 14.2-kg cylinder. Meanwhile, petrol and diesel prices have also remained stable. The last price adjustment for petrol and diesel occurred in mid-March, when rates were reduced by Rs 2 per litre.
Currently, petrol costs Rs 94.72 per litre in Delhi, while diesel is priced at Rs 87.62 per litre. The stability in petrol and diesel prices contrasts with the monthly fluctuations in jet fuel and commercial LPG prices.
Pricing Mechanism
State-owned fuel retailers, including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), revise ATF, LPG, and other fuel prices on the first day of each month. These revisions are based on the average price of benchmark international fuel and exchange rates, ensuring that domestic prices reflect global oil market trends.
