ATF prices rise by nearly 3%; Commercial LPG cylinder prices drop

The price hike in ATF is linked to higher global oil prices, caused by political tensions and trade conflicts. This will add more cost for commercial airlines, as fuel makes up around 40% of their total expenses. Airlines did not comment immediately on how this hike will affect them.

New Delhi: ATF prices went up by 3%, while the cost of commercial LPG cylinders dropped by Rs 33. 50. On Friday, the price of aviation turbine fuel (ATF) was increased, matching changes in international fuel prices. In the capital, the price of ATF went up by Rs 2,677. 88 per kilolitre, or 2. 9%, to Rs 92,021. 93 per kilolitre, according to state-run fuel companies. This comes after a big rise of 7. 5% (Rs 6,271. 5 per kilolitre) last month, which increased airline operating costs.

The increase in July follows three monthly price drops that started in April. The total cut during those three months was Rs 12,239. 17 per kilolitre. However, the recent rise of Rs 8,949. 38 per kilolitre almost completely wiped out the earlier savings.

The price hike in ATF is linked to higher global oil prices, caused by political tensions and trade conflicts. This will add more cost for commercial airlines, as fuel makes up around 40% of their total expenses. Airlines did not comment immediately on how this hike will affect them.

In Mumbai, the ATF price rose to Rs 86,077. 14 per kilolitre from Rs 83,549. 23 per kilolitre. In Chennai, it went up to Rs 95,512. 26 per kilolitre, and in Kolkata, to Rs 95,164. 90 per kilolitre. Prices differ from city to city because of local taxes like VAT. Also, oil companies lowered the price of 19 kg commercial cooking gas cylinders by Rs 33. 50. Now, in the capital, the price of commercial cooking gas is Rs 1,631. 50 per cylinder.

This is the fifth straight time that commercial cooking gas (LPG) prices have gone down. The last cut was on July 1, when the price dropped by Rs 58. 50. Before that, it was cut by Rs 24 on June 1, Rs 14. 50 on May 1, and Rs 41 on April 1. In total, the price has fallen by Rs 171. 50 per cylinder since April.

While oil prices have been rising, benchmark LPG rates have fallen because of lower summer demand. ATF and LPG prices vary by state, depending on local taxes, including VAT. However, the price of domestic LPG stayed the same at Rs 853 per 14. 2-kg cylinder. In April, the price of domestic cooking gas was increased by Rs 50 per cylinder.

State-owned oil companies like Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL), and Hindustan Petroleum Corp Ltd (HPCL) adjust ATF and cooking gas prices each month based on average international fuel prices and the exchange rate.

The prices of petrol and diesel have not changed in the country. Before last year’s general elections, prices were cut by Rs 2 per litre in mid-March. In Delhi, petrol is priced at Rs 94. 72 per litre, and diesel at Rs 87. 62 per litre.