ATF Prices Increase by 5%, Commercial LPG Sees a Rs 209 Raise

ATF Prices Increase by 5%, Commercial LPG Sees a Rs 209 Raise

Asif Iqbal | October 1, 2023 | 12:04 PM IST | Breaking News | Follow on Google News

ATF Prices Increase by 5%, Commercial LPG Sees a Rs 209 Raise

In an unfortunate turn of events for both the aviation and cooking gas industries, jet fuel prices witnessed yet another surge, marking the fourth consecutive monthly increase since July. Alongside this alarming trend, commercial cooking gas (LPG) rates also experienced a steep rise, with each 19-kg cylinder bearing an additional burden of Rs 209. While this increase corresponds to the firming up of international benchmarks, there is a glimmer of relief for household kitchens as domestic LPG prices remain unchanged at Rs 903 per 14.2-kg cylinder.

ATF Price Surge Hits Airlines Hard

Aviation turbine fuel (ATF) prices have escalated by Rs 5,779.84 per kilolitre, reflecting a substantial 5.1% increase in the national capital, now standing at Rs 118,199.17 per kl from its previous value of Rs 112,419.33. This announcement comes on the heels of the steepest-ever 14.1% surge (Rs 13,911.07 per kl) on September 1, followed by an 8.5% increase of Rs 7,728.38 per kl on August 1. The continual rise in jet fuel prices, constituting 40% of an airline’s operating cost, places additional pressure on financially strained airlines.

Record-Breaking ATF Price Hikes

Since July 1, when ATF prices saw an initial increase of 1.65% or Rs 1,476.79 per kl, four successive hikes have led to a record-breaking total increase of Rs 29,391.08 per kl. This relentless surge challenges the aviation industry’s resilience in the face of mounting costs.

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Commercial LPG Rates Climb High

In parallel with the increase in jet fuel prices, oil companies have raised the cost of commercial LPG, often used in establishments such as hotels and restaurants, by Rs 209 per cylinder. Consequently, a 19-kg commercial LPG cylinder will now cost Rs 1,731.50 in the national capital and Rs 1,684 in Mumbai. This rise effectively reverses most of the Rs 157.5 per cylinder reduction in commercial LPG prices implemented on September 1, and the previous Rs 100 cut effected from August 1.

These price adjustments can be attributed to the fluctuating Saudi contract price (CP), which serves as the benchmark for LPG pricing. It has risen in response to concerns over the supply of crude oil, which has experienced a firming-up trend in recent weeks.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) routinely revise cooking gas and ATF prices on the 1st of each month based on the average international prices in the previous month.Despite these alarming increases in ATF and commercial LPG rates, petrol and diesel prices have remained unchanged for a record 18th consecutive month.

In the national capital, petrol stands at Rs 96.72 per litre, while diesel is priced at Rs 89.62 per litre. The decision to freeze these prices stems from the government’s efforts to provide relief to consumers amid rising international oil prices, with the last price change occurring on May 22, 2022, when excise duty was reduced to mitigate the impact on retail rates.

Asif Iqbal

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.