Aviation Turbine Fuel and Commercial LPG Prices Raised Following International Trends

State-owned oil firms have hiked aviation turbine fuel prices by 5.46% and increased commercial LPG rates by ₹9.50 per cylinder. The revision follows international benchmark trends and adds to operating costs for airlines and commercial establishments.

State-owned oil firms have increased aviation turbine fuel (ATF) prices by 5.46 per cent, alongside a hike in commercial LPG rates. The revision aligns with a rise in international benchmarks and foreign exchange rates.

According to the updated figures, the price of jet fuel for domestic airlines has been raised by ₹6.28 per litre, bringing the cost to ₹121.28 per litre. This follows a previous increase of ₹5 per litre on August 1. Industry data indicates that ATF accounts for up to 40 per cent of an airline's operating costs, making these continuous price adjustments a significant factor in financial planning for the aviation sector.

Concurrently, commercial LPG prices for establishments such as hotels and restaurants have been raised by ₹9.50 per 19-kg cylinder, moving the rate from ₹2,738 to ₹2,747.50. Additionally, the price of the 5-kg market-priced cooking gas cylinder, known as 5-kg FTL, has increased from ₹762 to ₹764.

This commercial LPG price hike follows two consecutive monthly reductions, which included a cut of ₹192 per 19-kg cylinder on August 1 and ₹183.50 on July 1. These reductions came after rates reached record highs in June, driven by the West Asia crisis. Following the outbreak of the conflict in late February, commercial LPG rates had surged significantly from ₹1,740.50 in February to ₹3,113.50 in June.

Both ATF and LPG prices are revised on the first of every month, with rates varying from state to state depending on local taxes such as Value Added Tax (VAT).

Meanwhile, rates for domestic LPG used in household kitchens remain unchanged at ₹942 per 14.2-kg cylinder, a rate that was last increased by ₹29 on June 7. Prices for petrol and diesel, which were hiked by about ₹7.50 a litre each in May, also remained unchanged in the latest update.

"Fluctuations in international energy benchmarks directly impact domestic operating costs, particularly for sectors like aviation and hospitality where fuel and commercial LPG constitute major expenses. Businesses must factor these monthly price revisions into their working capital and operational budgeting to manage bottom-line pressures effectively during periods of global commodity volatility." — Dr. Shishir Gupta, Founder & CEO, StartupLanes