Jet Fuel Price Hiked 5%

Jet fuel or ATF price on Sunday was hiked by 5 per cent -- the fourth straight monthly increase since July, and commercial cooking gas (LPG) rates were raised by a steep ₹ 209 per 19-kg cylinder, in line with the firming up seen in international benchmarks.

However, the price of domestic LPG - the one used in household kitchens for cooking purposes - remained unchanged at ₹ 903 per 14.2-kg cylinder.

Aviation turbine fuel (ATF) price was increased by ₹ 5,779.84 per kilolitre, or 5.1 per cent, in the national capital to ₹ 118,199.17 per kl from ₹ 112,419.33, according to a price notification of state-owned fuel retailers.

The increase comes on back of the steepest-ever 14.1 per cent increase (Rs 13,911.07 per kl) effected on September 1, and a 8.5 per cent or ₹ 7,728.38 per kl increase on August 1.

The fourth straight increase in prices of jet fuel, which makes up for 40 per cent of an airline's operating cost, will increase the burden on already financially strained airlines.

On July 1, ATF price had gone up by 1.65 per cent or ₹ 1,476.79 per kl. In four increases, ATF prices have gone up by a record ₹ 29,391.08 per kl.

Alongside, oil firms raised the price of commercial LPG - the one used in establishments such as hotels and restaurants - by ₹ 209.

A 19-kg commercial LPG cylinder will now cost ₹ 1,731.50 in the national capital and ₹ 1,684 in Mumbai.

The increase reserves most of the ₹ 157.5 per cylinder cut in commercial LPG price effected on September 1 and ₹ 100 cut effected from August 1.

Saudi contract price (CP), the benchmark used for pricing of LPG, has increased following a firming up trend in crude oil prices witnessed in last few weeks over supply concerns.

Oil companies, which had on August 30, cut domestic LPG rates by ₹ 200 per 14.2-kg cylinder, did not change the price of 14.2-kg cylinders.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise cooking gas and ATF prices on the 1st of every month based on the average international price in the previous month.

Petrol and diesel prices continued to remain on freeze for a record 18th month in a row. Petrol costs ₹ 96.72 per litre in the national capital and diesel comes for ₹ 89.62 per litre.

State-owned fuel retailers are supposed to revise petrol and diesel prices daily, based on a 15-day rolling average of benchmark international fuel prices, but they haven't done that since April 6, 2022.

Prices were last changed on May 22, when the government cut excise duty to give relief to consumers from a spike in retail rates that followed a surge in international oil prices.

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