On Wednesday, the price of aviation turbine fuel (ATF), commonly known as jet fuel, was reduced by 1.5%, while the cost of commercial liquefied petroleum gas (LPG) used in hotels and restaurants was lowered by ₹14.5 per 19-kg cylinder. These changes were implemented as part of the monthly price revision aligned with international benchmark rates.
In the national capital, ATF prices dropped by ₹1,401.37 per kilolitre (kl), or 1.52%, bringing the new rate to ₹90,455.47 per kl. This revision follows two consecutive months of price hikes, including a ₹2,941.5 per kg (3.3%) increase on November 1 and a ₹1,318.12 per kg (1.45%) rise on December 1, 2024.
In Mumbai, another major aviation hub, the ATF price was reduced to ₹84,511.93 per kg from the previous rate of ₹85,861.02 per kg.
Commercial LPG Sees First Price Cut After Five Consecutive Hikes
The price of a 19-kg commercial LPG cylinder has been lowered by ₹14.5, bringing the cost to ₹1,804 in Delhi. This marks the first price reduction after five successive monthly increases. During this period, the price of commercial LPG cylinders had risen by a cumulative ₹172.5, with the most recent hike of ₹16.5 applied on December 1, 2024.
In other metropolitan cities, the updated prices for commercial LPG cylinders are ₹1,756 in Mumbai, ₹1,911 in Kolkata, and ₹1,966 in Chennai.
Domestic Cooking Gas and Petrol/Diesel Prices Unchanged
Despite changes in jet fuel and commercial LPG prices, the cost of domestic cooking gas remains steady at ₹803 per 14.2-kg cylinder. Similarly, petrol and diesel prices remain frozen, with no revisions since the ₹2 per litre reduction in March 2024, ahead of the general elections. Petrol currently costs ₹94.72 per litre in Delhi, while diesel is priced at ₹87.62.
Price Variations Across States
Prices of ATF, LPG, petrol, and diesel vary across states due to differences in local taxes, including value-added tax (VAT).
Pricing Mechanism
State-owned oil companies, including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), revise prices of ATF and LPG at the beginning of each month. These adjustments are based on the average international benchmark fuel prices and the prevailing foreign exchange rates.
The latest reduction in ATF and commercial LPG prices comes as a welcome relief for industries reliant on these fuels, providing temporary respite from the rising costs experienced in recent months. However, the price freeze on petrol and diesel continues to benefit individual consumers amidst fluctuating global fuel rates.
