State-Owned Oil Firms Raise ATF Prices by ₹1.37 and Commercial LPG by ₹10

State-owned oil firms have increased aviation turbine fuel (ATF) prices by ₹1.37 per litre, marking the fourth straight monthly rise for jet fuel. According to the revision, ATF prices went up to ₹138.50 per litre from ₹137.12 per litre.

The continuous upward revision in jet fuel rates is necessitated by firming rates of international benchmarks. Previous hikes included a steep ₹16 per litre increase on October 1, following increases of ₹6.28 per litre on September 1 and ₹5 per litre on August 1. Jet fuel accounts for up to 40 per cent of the operating cost of airlines, and this latest price hike will further push up carrier expenditure.

Alongside jet fuel, rates of commercial LPG, which is the cooking gas used in hotels and restaurants, were hiked by ₹10 per 19-kg cylinder. This brings the commercial LPG rate to ₹2,820, according to the oil companies. This marks the second straight monthly increase in commercial LPG prices, following a hike of ₹62.50 per 19-kg cylinder on October 1 and ₹9.50 on September 1.

These recent increases follow two consecutive monthly reductions of ₹192 in August and ₹183.50 in July. Those cuts came after commercial LPG prices surged to a record high in June amid disruptions to global energy supplies and elevated international prices. Commercial LPG prices had previously surged ₹1,373 per 19-kg cylinder between February and June, moving from ₹1,740.50 to ₹3,113.50 before falling in July and August.

The latest changes are based on movements in international benchmark prices and the rupee-dollar exchange rate. ATF and LPG prices are revised on the first day of every month and can vary across states because of local taxes such as VAT.

Meanwhile, prices of domestic LPG, which is used by households, were left unchanged at ₹942 per 14.2-kg cylinder. Domestic cooking gas rates were previously increased by ₹89 per cylinder between March and June following supply disruptions and a surge in international energy prices caused by the West Asia crisis. Additionally, petrol and diesel prices, which were hiked by about ₹7.50 a litre each in May, remained unchanged in the latest revision.

"The consistent rise in aviation turbine fuel and commercial LPG prices directly impacts operating margins for businesses in the aviation and hospitality sectors. Because jet fuel constitutes a significant portion of an airline's operational expenses, continuous price hikes require businesses to carefully manage cash flow and operational efficiencies to absorb these input cost pressures." — Dr. Shishir Gupta, Founder & CEO, StartupLanes